GBP Slips Again Despite Short‑Covering Bounce

Key Moments

Technical View: Rebound Seen as Temporary

UOB Senior Technical Strategist Quek Ser Leang assessed the recent GBP/USD advance from 1.3226 to 1.3340 as largely driven by short-covering rather than a structural shift in trend. Despite the sharp recovery, the analyst maintains a cautious stance on the pair’s broader direction.

On an intraday basis, GBP/USD is anticipated to trade within a relatively tight corridor between 1.3250 and 1.3350. The move higher has not been sufficient to negate the prevailing negative bias over the 1-3 week horizon, where 1.3180 remains identified as a key reference level.

Strategist Commentary

The strategist referenced prior guidance following the currency’s drop to a lower level:

“After GBP dropped to a low of 1.3220, we highlighted yesterday (16 Mar, spot at 1.3240) that GBP ‘is negative now, and the level to watch is 1.3180.’ GBP then staged a sharp rebound that almost breached our ‘strong resistance’ level at 1.3350 (high was 1.3340).”

“The build-up in downward momentum has slowed, but we will maintain our view for now.”

“The rebound appears to be part of a short-covering and is unlikely to be sustained. Today, we expect GBP to range-trade, most likely between 1.3250 and 1.3350.”

Key Levels and Longer-Term Risk Zone

While immediate pressure has eased somewhat, the broader technical picture remains cautious. A critical focus is on how the pair behaves around the 1.3300 mark on a weekly closing basis.

“A weekly close below the key support at 1.3300 could trigger a decline toward the major support zone at 1.2945/1.3010. (dated 06 Mar 2026, 1.3310)”

GBP/USD Levels in Focus