GBP/USD Slides Below Key Level as Risk Shifts Lower

According to United Overseas Bank's (UOB) analysts Quek Ser Leang and Lee Sue Ann, the British Pound (GBP) has fallen sharply against the US Dollar (USD). The pair closed at 1.3540 after reaching a low of 1.3527, contradicting expectations for range trading.

Although oversold conditions suggest further losses are unlikely, the analysts see limited upside potential within the 1.3520-1.3570 range. They expect the GBP/USD pair to remain under pressure as long as it holds below 1.3600, with a key level to watch being 1.3480.

Last Thursday, the GBP fell to a low of 1.3571 before recovering, and analysts had predicted that instead of declining further, the pair would trade in a range of 1.3570/1.3620. However, this did not materialize as the GBP fell sharply to its current level.

The risk remains skewed lower toward 1.3480, and the pair is likely to remain under pressure until it breaks above the 'strong resistance' level of 1.3600.