GBP/USD Sees Further Downside According to UOB Strategists

GBP/USD continued its downward trend, plunging to a low of 1.3375 and closing at 1.3380 according to UOB strategists Quek Ser Leang and Lee Sue Ann.

The sharp decline was seen as excessive but still suggests further downside in the pair. Intraday, they expect scope for a test of 1.3350 while holding above 1.3300.

Over 1-3 weeks, UOB expects continued weakness toward 1.3350 with possible extension to 1.3300 as long as resistance at 1.3460 caps rebounds. The strategists also highlight that the sterling's weakness targets the support level of 1.3350.

The 24-hour view shows that GBP traded within a relatively narrow range of 1.3465/1.3501 two days ago, but was unable to hold above 1.3435 during its recovery attempt yesterday.