GBP/USD: Below 1.3380, GBP is likely to range-trade – UOB Group

💡 DMK Insight

The GBP’s near-term upside bias is intriguing, but hitting 1.3505 could be a tough nut to crack. With the current sentiment leaning bullish, traders should be cautious as this level has historically acted as a resistance point. If GBP/USD approaches 1.3505 and fails to break through, it could trigger a wave of profit-taking, leading to a potential pullback. Keep an eye on economic indicators from the UK and the US that could influence this pair, especially any shifts in interest rate expectations. If the pair does manage to breach 1.3505, it could open the door to further gains, but until then, watch for signs of weakness around this level. A failure to break could also impact correlated assets like EUR/GBP, which may see increased volatility as traders reposition. In the coming days, monitor the daily close around 1.3505 for confirmation of the trend direction. If it holds below this level, consider short positions with a target around 1.3400.