The British Pound (GBP) has come under renewed pressure against the US Dollar (USD), with analysts from UOB, Quek Ser Leang and Lee Sue Ann, highlighting a downside risk toward the 1.3480 level. GBP/USD broke below its previously anticipated intraday range, dropping to a low of 1.3507, as downside momentum began to build. The analysts note that, intraday, the bias remains bearish, with potential tests of the 1.3500 and the major 1.3480 support levels, provided prices remain below 1.3545. Minor resistance is identified at 1.3530, while a breach of 1.3570 would indicate that the downward pressure has eased [1].
Over the past two days, GBP traded between 1.3531 and 1.3565, closing little changed at 1.3549 (+0.06%). However, instead of continuing in a range-trading phase as previously expected, the currency declined, signaling a shift in market sentiment. UOB maintains a downside risk focus for the next one to three weeks, with 1.3480 as the key level to watch unless the 1.3570 resistance is breached [1].
The market implication is a cautious outlook for GBP/USD, with traders and investors advised to monitor the 1.3480 support closely. Sustained movement below 1.3545 could reinforce the bearish momentum, while any move above 1.3570 may signal a reversal of the current downward pressure [1].
CONCLUSION
UOB analysts highlight a bearish outlook for the British Pound against the US Dollar, with downside risks toward 1.3480. Market participants should watch for sustained price action below 1.3545 to confirm further weakness, while a move above 1.3570 could ease the current downward pressure.