According to UOB analysts Quek Ser Leang and Lee Sue Ann, the British Pound (GBP) extended its sharp decline against the US Dollar (USD), reaching a low of 1.3205 before closing 0.16% lower at 1.3219. The analysts note that market conditions are deeply oversold due to this sharp drop, but the bias for GBP/USD remains on the downside, with the pair likely to trade within a 1.3190 to 1.3245 range in the near term [1].
Looking at the 1-3 week outlook, UOB highlights that while the recent weakness in GBP appears overextended, there is still scope for the currency pair to test the June low at 1.3140 before any stabilization occurs. The analysts point out that resistance levels at 1.3245 and 1.3295 are key; a move above 1.3295 would suggest that the downside risk towards 1.3140 has faded [1].
The report underscores that the Pound remains under pressure versus the Dollar, and the current market sentiment is cautious, with further declines possible unless significant resistance levels are breached [1]. No specific market reactions or analyst opinions beyond the technical outlook are provided in the source article.
CONCLUSION
The British Pound continues to face downside pressure against the US Dollar, with analysts seeing potential for a test of the June low at 1.3140. Unless GBP/USD breaks above key resistance levels, the risk of further declines remains in focus.