According to FX Strategists at UOB Group, further upside in GBP/USD seems to be losing momentum in the near term.

Key Quotes

24-hour view: “We highlighted yesterday that GBP ‘could dip below 1.3500 first before stabilization is likely’. We added, ‘the next support at 1.3470 is unlikely to come under threat’. Our view was not wrong as GBP dipped to 1.3492 before rebounding. The current movement is viewed as part of a consolidation phase and GBP is likely to trade sideways for today, expected to be between 1.3500 and 1.3570.”

Next 1-3 weeks: “We continue to hold the same view as from yesterday (07 Feb, spot at 1.3530). As highlighted, while upward momentum is beginning to wane, there is chance, albeit not a high one for GBP to make one more push higher to 1.3645. However, a breach of 1.3470 (‘strong support’ level) would indicate that the risk of another leg higher has dissipated.”