UOB’s Senior Technical Strategist Quek Ser Leang has commented on the recent movement in GBP/USD, noting that the sharp rebound from 1.3226 to 1.3340 appears to be driven by short-covering rather than a fundamental trend change [1]. The strategist expects the pair to range between 1.3250 and 1.3350 intraday, with the broader outlook remaining negative over the next 1–3 weeks [1]. Key levels highlighted include 1.3180 as a critical support, and a weekly close below 1.3300 could open the path toward the major support zone at 1.2945/1.3010 in the coming months [1].
Quek Ser Leang emphasized that the pound remains vulnerable on rallies, stating, "The build-up in downward momentum has slowed, but we will maintain our view for now" [1]. The rebound nearly breached the strong resistance at 1.3350, with a high of 1.3340, but is not expected to be sustained [1]. The technical outlook suggests that unless GBP/USD closes below 1.3300 on a weekly basis, further downside toward 1.2945/1.3010 may not materialize immediately [1].
No specific market reactions or analyst opinions beyond the technical outlook were provided in the article. The focus remains on the technical levels and the expectation of continued vulnerability for the pound on any rallies [1].
CONCLUSION
The GBP/USD pair's recent rebound is viewed as short-covering, with UOB maintaining a negative bias and highlighting key support levels. Unless a weekly close below 1.3300 occurs, further downside may be limited in the short term. Market participants should monitor these technical levels for potential shifts in momentum.