The Pound Sterling (GBP) is anticipated to maintain a downward trajectory, with analysts from UOB Group FX, Quek Ser Leang and Peter Chia, forecasting a potential drop towards 1.2780.
Short-Term Outlook: Bears Testing 1.2780
Over the past 24 hours, GBP showed limited movement, trading between 1.2850 and 1.2878 before closing at 1.2866, reflecting a slight gain of 0.12%. Analysts had previously indicated that further weakness was likely, noting that the currency needed to remain below 1.2895 to sustain the downward momentum. Instead of continuing to decline, GBP has consolidated within this range. For today, analysts predict GBP will likely trade between 1.2850 and 1.2895.
1-3 Weeks Outlook: Downward Bias Maintained
Looking ahead, analysts reiterated their previous assessment from July 26, noting that while downward momentum is evident, it is premature to expect a significant decline at this stage. They maintain that, as long as GBP remains below the “strong resistance” level of 1.2920, it is likely to trade with a downward bias toward 1.2780.
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