GBP/USD: Returns to range following unsuccessful breakout – UOB

Sterling Shifts Back to Sideways Trading

According to UOB strategists Quek Ser Leang and Lee Sue Ann, GBP/USD saw a sharp reversal, dropping from 1.3575 to 1.3447 and negating the previous upward outlook. They anticipate that, for now, the pair will likely stabilize and fluctuate between 1.3455 and 1.3525, as the recent decline seems overdone. Looking ahead over the next one to three weeks, the British Pound is expected to remain within a broader trading range of 1.3435 to 1.3605.

Pound Slides into Wider Trading Range

After climbing to 1.3575, the Pound quickly lost ground during the New York session, hitting a low of 1.3447 before recovering to close at 1.3481, marking a 0.58% decrease. The rapid drop appears exaggerated, so instead of continuing downward, GBP is more likely to consolidate today, likely moving between 1.3455 and 1.3525.

Earlier this week, with GBP at 1.3510, it was noted that the currency was likely entering a period of sideways movement, with expectations for it to trade between 1.3435 and 1.3605. Following a recent rally, there was an increased chance of GBP breaking above 1.3605, provided it stayed above the key support at 1.3475.

However, this scenario was quickly dismissed as GBP fell below the crucial support level, causing momentum to fade. The Pound now appears to have returned to a range-bound pattern between 1.3435 and 1.3605.

Looking further ahead, GBP/USD may continue to decline within a downward consolidation, but any additional weakness should find strong support near 1.2945. (Analysis as of 05 Dec 2025, with GBP/USD at 1.3215)

(This report was generated with the assistance of artificial intelligence and reviewed by an editor.)