GBP/USD: Pullback is on the cards – OCBC

Pound Sterling (GBP) eased further as escalation in geopolitical tensions weighed on sentiments. Pair was last at 1.3583 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Pullback lower not ruled out in the near term

"Daily momentum shows tentative signs of turning mild bearish while RSI fell. Pullback lower not ruled out in the near term. Support at 1.3510 (21 DMA), 1.3440 levels. Resistance at 1.3630 (overnight high)."

""This week’s focus on BoE (Thursday). No change is expected, but weaker labour market report and downside surprise to growth already saw markets add to rate cut expectations later this year. Dovish tilt in MPC vote may see GBP extend recent pullback."