United Overseas Bank (UOB) analysts Quek Ser Leang and Lee Sue Ann have highlighted ongoing weakness in both the British Pound (GBP) and Euro (EUR) against the US Dollar, with recent price action underscoring the risk of further declines for both currencies. For GBP/USD, the pair briefly broke below 1.3160, reaching a low of 1.3140 before recovering to close at 1.3170, marking a daily loss of 0.26% [1]. UOB maintains a negative stance on GBP/USD over the next 1–3 weeks, noting a chance for the pair to slide toward 1.3110, provided rebounds remain capped below 1.3245. Intraday, GBP could test 1.3130, but major support at 1.3110 is likely out of reach unless downward momentum increases [1]. Resistance levels are identified at 1.3185 and 1.3200, with a breach of the latter suggesting a shift to range trading rather than further downside [1].
Similarly, EUR/USD has extended its downtrend, falling to 1.1324 before rebounding. UOB analysts expect the pair to consolidate between 1.1330 and 1.1385 in the near term, following a rebound from deeply oversold conditions [2]. Over the next 1–3 weeks, further Euro weakness is anticipated, but a daily close below 1.1325 is required to open the way toward 1.1280. The steep decline from last week is considered overstretched, with EUR posting six consecutive lower highs as of yesterday [2]. The likelihood of EUR closing below 1.1325 remains as long as resistance at 1.1420 is not breached [2].
Both analyses emphasize technical factors as the primary drivers, with no mention of fundamental catalysts or broader market reactions. The focus remains on key support and resistance levels, with UOB analysts maintaining a cautious outlook for both GBP and EUR against the US Dollar in the short to medium term [1][2].
No forward-looking statements from other analysts or explicit market reactions are provided in the sources. The outlook is strictly technical, with both currencies at risk of further downside if support levels are breached [1][2].
CONCLUSION
UOB analysts see continued technical weakness for both GBP/USD and EUR/USD, with further downside possible if key support levels are breached. The market impact is medium, driven by technical signals rather than fundamental news. Traders should monitor support and resistance levels closely, as a breach could trigger additional declines.