The British pound made modest gains against the US dollar Tuesday, climbing to 1.3469 after briefly touching 1.3486, according to United Overseas Bank currency strategists Quek Ser Leang and Lee Sue Ann. The advance represents only marginally stronger short-term momentum for the currency pair, falling short of signals for a sustained breakout.
UOB analysts forecast GBP/USD will remain range-bound between 1.3445 and 1.3495 in the near term, dismissing prospects for a strong rally beyond the 1.3555 resistance level mentioned in their technical assessment. The limited upside potential suggests sterling bulls lack sufficient conviction to push through key overhead barriers despite recent intraday strength.
Traders and forex brokers should prepare for continued consolidation rather than directional opportunities in cable. The pair’s inability to sustain gains near the 1.3486 level indicates profit-taking pressure and cautious sentiment remain dominant forces in sterling markets.
FXnCO Insight
Position for range-trading strategies in GBP/USD between 1.3445-1.3495 rather than chasing breakouts, as technical resistance at 1.3555 is expected to cap upside momentum.
Source: FXStreet