GBP Holds Range but Analysts Still See Downside Risk

Despite recent market volatility, the British Pound (GBP) remains in a short-term range against the US Dollar (USD), according to analysts at United Overseas Bank (UOB). The pair has been trading between 1.3535 and 1.3570, with intraday trade expected to remain within this range. However, UOB's Quek Ser Leang and Lee Sue Ann note that there is still downside risk toward 1.3480 over the next 1-3 weeks, as long as the GBP stays below 1.3600.

The analysts point out that conditions are deeply oversold, which has limited sustained declines in the pair. Nevertheless, they caution that further declines should be expected until the GBP breaks above 1.3600. The longer-term outlook for the pair is range-trading, with no clear direction indicated by market movements.

In a recent analysis, UOB noted that the GBP fell sharply to a low of 1.3527 last Friday, but then traded between 1.3531 and 1.3565, closing little changed at 1.3549 (+0.06%). The price movements have been part of a range-trading phase, with the pair holding within the 1.3520/1.3570 range.