GBP/USD Sees Limited Downside as Oversold Conditions Ease

UOB analysts Quek Ser Leang and Lee Sue Ann point out that despite GBP/USD's recent pullback, it has closed almost unchanged around 1.3595. The pair's oversold conditions and slowing momentum suggest a limited immediate downside with intraday trade expected between 1.3570 and 1.3620.

The analysts expect only modest downside in the next one to three weeks, likely contained within a 1.3550-1.3645 range. This view is based on the prevailing momentum, which they believe could prevent any decline from being more severe.