UOB Group’s foreign exchange strategists expect both the British pound and the euro to trade within defined ranges against the US dollar, according to separate technical notes published on Monday. The outlooks point to consolidation rather than clear directional moves, with key resistance and support levels guiding short-term positioning.
GBP/USD outlook: UOB sees the pound consolidating with immediate resistance at 1.2700 and 1.2750, while support sits at 1.2600 and 1.2550. Strategists note that although sterling has shown some resilience, momentum is insufficient to push it significantly higher. As of the latest update, GBP/USD is trading near the middle of its recent range, reflecting balanced buying and selling pressure.
EUR/USD outlook: The euro failed to sustain an upside break above 1.1050, stalling bullish momentum and leading UOB to expect range trading between 1.0850 and 1.1050. The euro’s inability to gain further ground comes amid cautious European Central Bank policy expectations and a US dollar supported by resilient economic data and the Federal Reserve’s higher-for-longer interest rate stance.
Market context: The forecasts arrive as the US dollar index fluctuates on expectations of Federal Reserve policy and global risk sentiment. For traders, UOB’s range-bound views suggest breakout strategies may be less effective, while range-trading approaches — buying near support and selling near resistance — may be more suitable until a clear catalyst emerges. Analysts note that significant changes in monetary policy, unexpected economic data, or major geopolitical events could still trigger a breakout from these ranges.
