Analysts at UOB Group, Quek Ser Leang and Peter Chia, expect the Pound Sterling (GBP) to consolidate within a narrow range of 1.3140 to 1.3245 in the near term. While the broader outlook for the GBP/USD pair remains negative, analysts note that it is uncertain whether the pair will be able to extend its decline toward the 1.3100 level during the current phase of weakness.
Short-Term Outlook (24-Hour View)
According to UOB, the GBP/USD pair experienced a sharper-than-expected fall over the past two sessions. After touching a low of 1.3248 earlier in the week, the Pound extended losses to 1.3142 on Wednesday before rebounding slightly to close at 1.3196 (down 0.57%).
Analysts noted that the rebound from oversold levels indicates limited downside potential in the short term. As a result, the pair is now expected to consolidate between 1.3140 and 1.3245 rather than continue its decline.
Medium-Term Outlook (1–3 Weeks View)
From a broader perspective, UOB maintains a bearish bias for GBP/USD, noting that downside momentum remains intact even though the market is deeply oversold.
The pair’s failure to hold above 1.3210 and its drop to 1.3142 reinforce the weak tone, though the 1.3140 area — last tested in August — continues to act as a key support.
Analysts add that a break below 1.3140 could open the door toward 1.3100, the next major target. However, if the Pound climbs above 1.3285 (the revised strong resistance level, down from 1.3340), it would signal that bearish pressure is easing and a stabilization phase may be underway.
✅ Summary:
UOB Group expects GBP/USD to stay range-bound between 1.3140 and 1.3245 in the short term amid oversold conditions. While the medium-term trend remains negative, a sustained move above 1.3285 would suggest that the recent weakness is starting to stabilize.