GBP/USD Drops Sharply to 1.3493, Consolidation Expected in Short Term

GBP/USD has fallen sharply to 1.3493, prompting concerns that it may be overstretched in the short term.

According to United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann, consolidation between 1.3495 and 1.3535 is likely for now.

However, they warn that building downside momentum could lead to a close below 1.3495, opening the way to 1.3475 if support at this level gives way.

The UOB strategists also note that resistance is clustered near 1.3560, and as long as GBP holds below this level, downward momentum will continue to build.