Sterling stalled near 1.3500 after reclaiming key moving averages, with trading confined to a tight range amid UK political inactivity.
The British pound remained trapped in a narrow range against the US dollar, unable to sustain a breakout above 1.3500. Monday’s session saw GBP/USD reclaim moving averages that had capped rallies since mid-July, but follow-through faded as UK lawmakers began their summer recess.
Prior to the breakout attempt, sterling had struggled to hold gains above its 50-day moving average, with repeated rejections near 1.3450. The latest rally stalled just shy of 1.3500, a level not breached since early July, as thin liquidity and reduced market participation limited momentum.
Trading volumes have since declined, with price action confined to the range established in the past two sessions. The lack of fresh catalysts from UK economic or political developments has kept the pair in consolidation mode.