GBP/USD Weakening Expected as Major Support Looms

The British Pound (GBP) has been experiencing downward pressure, and analysts at UOB expect it to continue weakening against the US Dollar. The GBP/USD exchange rate slipped below 1.3475 before rebounding, with intraday trade now expected between 1.3470 and 1.3520.

According to Quek Ser Leang of UOB, building downside momentum suggests further weakness in the Pound. However, the major support at 1.3410 may not be tested immediately.

A break above 1.3540 would indicate that 1.3410 is out of reach for now. The analyst notes that a rebound from oversold conditions suggests the GBP is more likely to trade in a range today, rather than continuing to decline.