GBP: Downside Pressure Against USD Persists - UOB

UOB foreign exchange strategists, including Quek Ser Leang, hold the latest view that downside pressure on GBP/USD continues. The pair previously plunged to near 1.3493 before rebounding somewhat, but the overall weak pattern has yet to reverse.

**Short-term movement may be range-bound**

According to UOB's analysis, GBP/USD has seen a technical rebound after excessive declines, but upside momentum is limited. The bank expects intraday price action to enter a consolidation phase, with trading likely ranging between 1.3485 and 1.3540. At the time of writing, GBP/USD is trading at 1.34831, near the lower end of this forecast range, indicating that current market sentiment remains cautious.

**Key support level under test**

UOB strategists specifically noted that the 1.3480-1.3495 area is the current key support zone. The pair has already dipped to 1.3493, approaching this support region. Market reports indicate that if this support level is decisively broken, it could open up further downside space. However, the bank also pointed out that the short-term decline appears somewhat overdone, which provides conditions for the pair to consolidate at lower levels.

**Focus on USD and risk sentiment changes**

Recent GBP weakness is closely tied to broader USD strength and shifts in market risk appetite. UOB's analysis focuses on technical movements, and its range-bound forecast reflects that the market, after digesting recent declines, is awaiting new catalysts to clarify direction. Investors should closely monitor the subsequent impact of relevant macroeconomic events on the exchange rate.