UOB strategists expect GBP/USD to consolidate between 1.3400 and 1.3475 after failing to sustain gains above 1.3500.
GBP/USD pulled back from a high of 1.3506 to close at 1.3434, down 0.35%, after an overbought rally lost momentum. The decline follows a sharp rise last week, with strategists noting limited scope for further upside near-term.
The pair is expected to trade within a 1.3400–1.3475 range, with a sustained drop below 1.3400 seen as unlikely. While strong momentum still points to potential upside over 1–3 weeks, resistance at 1.3555 remains a key hurdle.
Downward pressure has not accelerated, suggesting the pullback is part of a broader consolidation rather than a reversal. Support is pegged at 1.3385, below which momentum could weaken further.