Pound Expected to Stay Between 1.3220 and 1.3320 Amid Weakened Downside Risk
Pound Sterling is anticipated to move within a trading range of 1.3220 to 1.3320, according to foreign exchange analysts at UOB Group. The currency specialists Quek Ser Leang and Peter Chia believe that over the longer term, chances of GBP dropping decisively below the 1.3140 level have decreased substantially.
Short-Term Trading Outlook
During Friday’s New York trading session, the British pound surged to a peak of 1.3309 before closing at 1.3278, marking a solid 0.56% daily gain. However, analysts note that despite this impressive rally, upward momentum hasn’t strengthened meaningfully, leading them to forecast range-bound trading between 1.3220 and 1.3320 for the current session.
European Update: As expected, despite a shocker of a jobs report out of the #US, $GBPUSD is finding the 1.33 level a tough nut to crack. #GBP's relative weakness vs peers plays a role here. Against the Greenback though we may find support levels to hold. 1.3250 could show up… pic.twitter.com/4WtNR6DWo3
— Forex Analytix (@forexanalytix) August 4, 2025
Technical Analysis Points to Momentum Shift
The analysts’ previous assessment from Thursday, July 31st, when GBP was trading at 1.3250, highlighted persistent downward pressure that suggested continued weakness toward May’s low of 1.3140. Friday’s price action saw the currency drop to just a few pips above this critical level, touching 1.3143, before staging a dramatic recovery to 1.3309.
This volatile session has significantly reduced downward momentum in the pair. While the probability of GBP breaking definitively below 1.3140 has weakened considerably, analysts maintain that only a move above 1.3355 – which remains unchanged as a strong resistance level – would signal that the currency’s weakness from the previous week has truly stabilized.
Broader Market Sentiment
The technical analysis suggests ongoing uncertainty in traditional forex markets, which typically correlates with cautious sentiment across risk assets including cryptocurrencies. Currency volatility often reflects broader economic concerns that can influence investor appetite for digital assets.