GBP/USD Range Bound, Limited Downside Predicted: UOB Analysts
According to United Overseas Bank (UOB) analysts, the British pound is expected to see limited downside against the US dollar in the near term.
The pair is trading within a tight corridor, with immediate support at the lower end of the range and resistance at the upper boundary.
This assessment suggests that traders should adopt a strategy of selling near resistance and buying near support, rather than expecting a directional move.
UOB's FX team notes that while the pound has shown some resilience, the lack of strong momentum indicates that a breakout is unlikely in the immediate term.
The market context is influenced by monetary policy expectations from the Bank of England and the Federal Reserve, as well as broader risk sentiment in global markets.