GBP/USD extended its weakness for the fourth consecutive day on Tuesday, testing support near the 1.3400 level and trading around 1.3430 during European hours, according to FX Street. Despite the recent downtrend, technical analysis still points to a prevailing bullish bias as the pair remains within an ascending channel.
United Overseas Bank (UOB) noted that the pair’s price action is range-bound following an intraday spike and sharp drop. UOB expects GBP/USD to hold between 1.3400 and 1.3460 in the short term, while a broader range of 1.3385 to 1.3495 is anticipated over the coming weeks.
For Japanese investors, the GBP/USD’s stable yet cautious movement underscores the importance of monitoring UK currency dynamics as global risk sentiment fluctuates, impacting forex and equity markets linked to international trade and investment flows.