GBP/USD: Possible consolidation in the 1.3400/1.3535 range according to UOB Group analysis

The GBP/USD pair shows signs of bearish pressure that could trade within a limited range between 1.3400 and 1.3535, according to the technical assessment presented by experts Quek Ser Leang and Peter Chia from the UOB group.

Medium-term analysis: Pound weakness within a defined range

The specialists maintain their stance that any downward movement of GBP would be contained within a lower band bounded by 1.3400 as a critical support and 1.3535 as the zone’s ceiling. If the pair breaks below the 1.3400 level, a more pronounced and sustained decline toward lower values is anticipated.

Recent dynamics: Rebound from weak levels

During the previous session, when GBP touched 1.3460, analysts projected a test of the 1.3435 level. Although the pair initially fell to 1.3418, it managed to recover and closed at 1.3442, reflecting a 0.11% retracement. This movement suggests that the downward momentum is gradually losing strength.

Short-term outlook: Vigilance around 1.3420

In the immediate horizon, there is a possibility that GBP will attempt to approach 1.3420 again. However, the main support established at 1.3400 remains capable of containment according to the specialists. On the upside, traders should monitor resistances at 1.3460 and 1.3475 as critical control levels.

UOB Group analysts emphasize that as long as the pair remains within this band, the GBP/USD quote will continue to show greater volatility on the downside, without compromising the integrity of the main support in the short term.