GBP Slumps Against USD, Analysts Expect Consolidation

According to United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann, the British Pound (GBP) has seen a sharp drop against the US Dollar (USD), reaching as low as 1.3493.

The analysts believe that this sharp decline appears overdone and instead of continuing to fall, the GBP is more likely to consolidate between 1.3495 and 1.3535 in the short term.

However, on a one-to-three-week horizon, building downside momentum means that if the GBP closes below 1.3495, it will likely open the way to 1.3475, while resistance is now clustered near 1.3560.