GBP/USD at risk of exploring the lower end of the 1.3400/1.3535 range – UOB Group Analysis

UOB Group currency analysts Quek Ser Leang and Peter Chia maintain a cautious outlook on the GBP/USD pair, noting that downward pressure is gaining ground, although any probable decline would stay within a well-defined range bounded by key levels of 1.3400 to 1.3535.

Downward pressure accelerates but with clear limits

In the short term, GBP movement shows mixed characteristics. The previous session closed at 1.3442, reflecting a 0.11% decline from the open at 1.3460. Although the pair briefly broke below the 1.3435 level, it found support at 1.3418 before recovering, suggesting that the bearish momentum is losing steam.

Analysts warn that GBP could attempt to test 1.3420 again, but they highlight that the main support at 1.3400 has a low probability of being breached in this move. On the upside, resistance barriers are identified at 1.3460 and 1.3475, levels that could halt any upward reaction.

Medium-term outlook: watch at 1.3400

The one to three-week outlook remains consistent with the short-term analysis. UOB Group emphasizes that any further weakening of GBP is likely to stay within the well-lower range of 1.3400/1.3535 before presenting new trading opportunities.

However, a critical scenario to monitor is if GBP manages to break below 1.3400, which could trigger a sustained and significant decline, increasing the chances of a bearish exploration beyond current support levels.