United Overseas Bank’s (UOB) analyst Quek Ser Leang has highlighted ongoing downside risks for both the British Pound (GBP/USD) and the Euro (EUR/USD) against the US Dollar following recent declines in both currency pairs [1][2]. For GBP/USD, after four consecutive daily drops, the Pound closed at 1.3358, down 0.16%, with intraday trading expected between 1.3335 and 1.3390. The 1–3 week outlook remains bearish, targeting 1.3350 and possibly 1.3300, though strong resistance is now set at 1.3435. Despite the decline, UOB notes that downward momentum has not intensified, and the GBP is likely to range-trade in the near term due to deeply oversold conditions [1].
Similarly, UOB maintains a bearish stance on EUR/USD, with the pair recently plunging to a low of 1.1460 and closing little changed at 1.1474 (+0.09%). Intraday, EUR/USD is expected to trade between 1.1460 and 1.1500, while the 1–3 week outlook sees potential for further losses toward 1.1435 and 1.1400, provided the strong resistance at 1.1545 is not breached. The EMAs continue to signal further downside, but oversold conditions suggest any decline could remain within the 1.1435/1.1505 range [2].
Both analyses emphasize that while the bias remains to the downside, oversold short-term conditions may limit further immediate declines. For GBP/USD, a breach of the strong resistance at 1.3435 would indicate stabilisation, while for EUR/USD, the negative outlook persists unless resistance at 1.1545 is overcome [1][2].
No explicit market reactions or analyst opinions beyond the technical outlooks are provided in either article. The focus remains on technical levels and the potential for further downside, tempered by oversold conditions.
CONCLUSION
UOB’s technical analysis signals continued downside risks for both GBP/USD and EUR/USD, with key support and resistance levels guiding the outlook. However, deeply oversold conditions in both pairs may constrain further immediate declines. The market takeaway is a cautious bearish stance, with stabilisation possible if resistance levels are breached.