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UOB's Senior Technical Strategist Quek Ser Leang analyzed GBP/USD's recent price action, noting that its rebound from 1.3226 to 1.3340 appears to be short-covering rather than a reversal of the bearish trend. The pair is projected to trade within a narrow range between 1.3250 and 1.3350 during the day. This assessment suggests a continuation of the negative bias, with key resistance at 1.3350 and support near 1.3250. For forex traders, this range-bound scenario implies limited directional momentum. Breakouts above 1.3350 could signal a shift in sentiment, while a breakdown below 1.3250 might accelerate the decline toward 1.3000. The analysis highlights the importance of monitoring these levels for potential trading opportunities. The implications for global forex markets are significant, as GBP/USD is one of the most liquid currency pairs. Traders should watch for follow-through volume and any unexpected macroeconomic data from the UK or US that could disrupt the current consolidation. Central bank interventions or shifts in interest rate differentials between the BoE and Fed could also impact the pair's trajectory.
