United Overseas Bank currency strategists are warning that the British pound’s recent momentum against the US dollar is running into technical resistance despite extending last week’s gains. Analysts Quek Ser Leang and Lee Sue Ann reported today that GBP/USD is showing overbought conditions that should limit near-term trading within a narrow 1.3490 to 1.3535 range, with upside firmly capped around 1.3555.
The assessment comes as cable has pushed higher following last week’s rally, but technical indicators suggest exhaustion at current levels. Traders and forex brokers should anticipate range-bound price action rather than breakout conditions in the immediate term. The overbought signal indicates the recent bullish run may need consolidation before any further upside can materialize.
Currency desks and algorithmic trading systems should recalibrate expectations for GBP positioning given the technical ceiling identified by UOB strategists.
FXnCO Insight
Traders should consider profit-taking on long GBP/USD positions near 1.3535 and avoid chasing breakouts above 1.3555 until overbought conditions ease.
Source: FXStreet