GBP Trapped in Tight Ranges Against USD

The British Pound has been locked in tight ranges against the US Dollar for several days, according to United Overseas Bank's (UOB) analysis. The bank's Quek Ser Leang and Lee Sue Ann report that intraday moves have been seen between 1.3475 and 1.3515 as momentum has faded.

For the coming 1-3 weeks, they expect the Pound to trade in a broader 1.3440-1.3540 band after a brief test of 1.3540. Longer-term signals point to range-trading with supports at 1.3210/1.3160 and resistance at 1.3610/1.3655.

UOB notes that the Pound rose briefly to 1.3540 two days ago before dropping back down to a low of 1.3488, which is still within their expected range-trading phase between 1.3475 and 1.3525.