GBP Rebound Stalls as UOB Sees Consolidation Ahead

UOB's Quek Ser Leang notes that the British Pound (GBP) rebounded from its low of 1.3479 to close at 1.3535 after a sharp drop. The rebound was expected, with intraday price action likely to consolidate between 1.3485 and 1.3540.

On a 1-3 week view, a close below 1.3495 would likely trigger a break of the next support at 1.3475, while resistance at 1.3560 caps the upside. The broader pullback has scope to extend toward 1.3410.

Last Friday, UOB noted that downward momentum was starting to build, and if GBP closed below 1.3495, it would likely break the next support at 1.3475 as well. However, despite a brief drop to 1.3479, GBP rebounded to close 0.19% higher at 1.3535.