GBP/USD Plummets to Fresh Lows as Analysts Warn of Downside Risk

GBP/USD plummeted to a low of 1.3527 on Friday before settling at 1.3540, defying expectations for range trading, according to UOB analysts Quek Ser Leang and Lee Sue Ann.

The pair's sharp decline was unexpected as the analysts had predicted it would trade within a range of 1.3570/1.3620 due to oversold conditions. However, they noted that 'conditions remain deeply oversold, and further sustained decline appears unlikely.'

Looking ahead, UOB sees limited further losses for GBP/USD within a range of 1.3520-1.3570.

The analysts also highlighted the risk remains on the downside with the level to watch at 1.3480. They noted that as long as GBP holds below 1.3600, it will remain under pressure.