GBP/USD Limited by Oversold Conditions and Slowing Momentum

The British Pound has continued its recent pullback against the US Dollar but closed almost unchanged around $1.3595, according to UOB's analysis.

Quek Ser Leang and Lee Sue Ann from United Overseas Bank note that despite the pound's decline, oversold conditions combined with slowing momentum suggest that further immediate downside is limited.

The analysts expect intraday trade to occur between $1.3570 and $1.3620, and over the next one to three weeks they see only modest downside likely contained within a $1.3550-$1.3645 range.