The near-term bias is tilted to the upside, but Pound Sterling (GBP) may not break above 1.3505, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
24-HOUR VIEW: “Yesterday, GBP soared to a high of 1.3491 before pulling back, closing modestly higher by 0.12% at 1.3443. The pullback amid slowing momentum and overbought conditions suggests GBP is unlikely to rise further. Today, we expect GBP to range-trade, most likely between 1.3420 and 1.3470.” Read more…
GBP/USD growth driven by weakening US Dollar
On Wednesday, GBP/USD remained stable at 1.3436. The British pound was supported by a sell-off in the US dollar following increased trade tensions between the US and Europe over Greenland.
US President Donald Trump has threatened to impose tariffs on imports from the UK, Denmark, Norway, Finland, France, Germany, and the Netherlands if these countries do not agree to transfer control of Greenland to the US. In response, investors began pulling back from American assets, including the dollar, and reallocating funds into European currencies and gold. Read more…
