GBP/USD Set to Soar: Here’s Why That 1.3390/1.3465 Range Could Be a Goldmine for Traders Right Now

Ever notice how the Pound Sterling and the US Dollar seem caught in a slow dance—more of a cautious shuffle than a fiery tango? That’s exactly what we’re witnessing now: GBPUSD is hesitating, consolidating between roughly 1.3390 and 1.3465, with a tougher undertone nudging it slightly higher. Yet, despite this subtle uptick, the longer-term storyline is more bearish than bullish. It’s like watching a heavyweight champ pacing the ring—ready to strike, but holding back for the right moment. UOB’s sharp-eyed FX analysts Quek Ser Leang and Peter Chia have been keeping tabs, noting the key technical target of 1.3320 might be a distant, slow-cooked goal rather than an immediate slam dunk because consolidation is likely here for a bit. Questions swirl: Is this patience a smart strategic pause or just the calm before the storm? And how should investors adjust their game plan in this tug-of-war? Stay tuned, because this quiet in the markets might be louder than it seems. LEARN MORE

Further consolidation seems likely; the firmer underlying tone suggests a higher range of 1.3390/1.3465. In the longer run, Pound Sterling (GBP) view is still negative against US Dollar (USD); the next technical target at 1.3320 may not come into view so soon, as it could consolidate first, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

Technical target at 1.3320 may not come into view

24-HOUR VIEW: “Following the choppy price action in GBP two days ago, we indicated yesterday that ‘despite the sharp fluctuations, the current price movements are likely part of a 1.3360/1.3460 consolidation phase.’ We did not expect the sharp decrease in volatility, as GBP traded in a quiet manner between 1.3375 and 1.3421, closing unchanged at 1.3418. Further consolidation seems likely, even though the firmer underlying tone suggests a higher range of 1.3390/1.3465.”

1-3 WEEKS VIEW: “We have maintained a negative GBP view since early this month. In our most recent narrative from two days ago (16 Jul, spot at 1.3395), we reiterated that ‘GBP view is still negative.’ However, we pointed out that ‘the next technical target at 1.3320 may not come into view so soon, as it could consolidate first.’ Since then, downward momentum has slowed somewhat, but we will maintain our view as long as 1.3490 (‘strong resistance’ previously at 1.3500) is not breached.”