GBP Tests Support at 1.3140 Amid Ongoing Decline

The British Pound has continued its decline against the US Dollar, reaching a low of 1.3205 before closing at 1.3219, down 0.16% from yesterday's close. The sharp drop has left conditions for the GBP/USD deeply oversold, but analysts at UOB believe the bias remains on the downside.

According to Quek Ser Leang and Lee Sue Ann of UOB, any decline in the GBP is likely to stay within a 1.3190/1.3245 range. They also see scope for a test of the June low at 1.3140 before stabilization.

The analysts note that despite conditions being oversold, the bias for the GBP remains on the downside, and any decline could be limited by resistance levels at 1.3295 and 1.3245. A breach of these levels would indicate that the June low is out of reach.