The British pound is trading sideways against the US dollar as momentum cools following an overbought stretch, according to United Overseas Bank currency strategists Quek Ser Leang and Lee Sue Ann. GBP/USD has entered short-term consolidation with price action currently trapped between 1.3620 and 1.3665 after reaching 1.3675 in recent sessions. The temporary range-bound movement suggests the pair is pausing after extended gains, with traders now watching for directional catalysts. Despite the current stall, UOB maintains a constructive outlook pointing to 1.3700 as the next upside target once the cable breaks out of its narrow trading band. The analysis indicates the consolidation represents a technical breather rather than a trend reversal, with the broader bullish structure remaining intact for sterling. Market participants should monitor whether support at 1.3620 holds or if resistance at 1.3665 gives way to renewed upward pressure.
FXnCO Insight
Traders should wait for a confirmed break above 1.3665 resistance before positioning for the 1.3700 move, while maintaining stop-losses below 1.3620 to manage downside risk during this consolidation phase.
Source: FXStreet