The Pound Sterling (GBP) is anticipated to trade within a range of 1.2740 to 1.2840, with further downward movement likely limited, according to UOB Group FX analysts Quek Ser Leang and Lee Sue Ann. The recent decrease in GBP momentum suggests that any additional weakness may only extend to a retest of the 1.2710 level.
24-Hour View: Analysts had predicted GBP weakness last Friday but noted that severely oversold conditions would likely limit further decline to around 1.2695. The GBP fell to 1.2708 before rebounding to a high of 1.2840, closing at 1.2805—a 0.55% gain. The analysts now believe that the rapid rise appears exaggerated and forecast that GBP will likely trade between 1.2740 and 1.2840 today.
1-3 Weeks View: Since July 26, when GBP was at 1.2855, analysts have maintained a bearish outlook. Following a significant drop last Thursday, they had anticipated further weakness but also noted potential overextensions. GBP’s recent decline to 1.2708, followed by a rebound to near 1.2840, has slowed downward momentum. While the negative outlook persists, any further weakness is projected to be constrained to a retest of the 1.2710 level. The 1.2840 level remains a key resistance point, and surpassing this would signal a shift away from further GBP weakness.
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