UOB strategists expect GBP/USD to consolidate between 1.3400 and 1.3475 after a pullback from overbought levels.
GBP/USD reversed from a high of 1.3506 to close at 1.3434, signaling an overbought correction. The pair is now expected to trade within a 1.3400–1.3475 range, with downside risks contained unless 1.3400 is breached.
The pullback follows a sharp rally that pushed the pair to its highest level in recent sessions. Analysts note that while further downside is possible, a sustained drop below 1.3400 would be required to signal a deeper correction.