UOB Sees Pound Drifting Toward 1.3140 Against Dollar

United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann noted that the British Pound (GBP) against the US Dollar (GBP/USD) traded sideways on Monday, closing slightly lower near 1.3225. The intraday price action showed no clear momentum, suggesting a continuation of range-bound trading in the near term.

Looking ahead to the next 1-3 weeks, the strategists maintained a mildly negative outlook for the Pound. They anticipate a gradual decline toward the major support level at 1.3140, while longer-term technical indicators still suggest further downside risk toward previous lows.

The 24-hour view highlighted that GBP dipped to 1.3184 and then rebounded to 1.3256 last Friday. Despite this volatility, the strategists predicted that the Pound would likely remain within a 1.3195 to 1.3245 range today, with no significant shift in either upward or downward momentum.

UOB turned slightly negative on GBP last Friday when the spot rate was at 1.3195. They noted that while downward momentum was building, it was not strong enough to drive a sharp decline. The strategists emphasized that their view would remain unchanged as long as the 'strong resistance' at 1.3265 is not breached.