GBP/USD: Neutral Stance Prevails as Price Action Remains Constricted

UOB's Quek Ser Leang and Lee Sue Ann maintain their neutral stance on the British Pound (GBP) against the US Dollar (USD). They observe that recent price action has been confined to a narrower range between 1.3531 and 1.3567, with the GBP/USD pair closing at 1.3547 (+0.05%) yesterday.

The analysts note that this sideways trade suggests the price may be contained within a tighter band of 1.3495-1.3590. They highlight the possibility of a pullback extending below the 55-day Exponential Moving Average (EMA) at 1.3475 and toward trendline support near 1.3410 over a 1-3 month horizon.

The analysts' view remains unchanged from their previous forecast, which predicted that the GBP would trade between 1.3520 and 1.3570. Despite some upward movement in recent days, there has been no significant increase in upward momentum, supporting their neutral stance.