GBP Plummets to 1.3527 Against USD as Risk Remains Skewed Lower
The British Pound (GBP) has fallen sharply against the US Dollar (USD), contradicting expectations for range trading. According to United Overseas Bank's (UOB) Quek Ser Leang and Lee Sue Ann, the GBP/USD pair dropped to a low of 1.3527 before settling at 1.3540.
The analysts report that despite oversold conditions and slowing momentum, further sustained decline appears unlikely. However, they note that risk remains skewed lower towards 1.3480 while the pair holds below 1.3600.
Last Thursday, the GBP fell to a low of 1.3571 before recovering to close little changed at 1.3594 (-0.03%). The analysts had previously predicted range trading between 1.3570/1.3620, but were incorrect as the pair continued to decline.
The risk remains on the downside for the coming weeks, with a key level to watch being 1.3480.