GBP Price Action Stalls in Consolidation Mode Against USD

British Pound (GBP) price action has been relatively quiet in recent days, trading between 1.3423 and 1.3456 after a prior spike to 1.3506. According to United Overseas Bank's (UOB) analysts Quek Ser Leang and Lee Sue Ann, near-term consolidation is expected within a 1.3425-1.3470 band.

The analysts believe that momentum has eased over the past week, but a move towards 1.3555 remains possible as long as support at 1.3385 holds. Over the 1-3 month view, range trading between 1.3210 and 1.3655 is expected, with residual upside risk.

In their previous analysis from Monday (03 Aug), the analysts noted that while strong momentum suggested further upside, it remained to be seen whether GBP could break and hold above significant resistance at 1.3555. Since then, upward momentum has eased, but a chance for GBP to rise towards 1.3555 still exists as long as support at 1.3385 is not breached.