According to UOB’s Quek Ser Leang, the British Pound (GBP) slipped below the 1.3475 level against the US Dollar (USD) before rebounding, closing 0.27% lower at 1.3499 on the previous trading day [1]. The analyst notes that downside momentum is building for GBP/USD, with the potential for further weakness in the near term. However, he indicates that the major support at 1.3410 may not be tested immediately, as the rebound from oversold conditions suggests a likely trading range between 1.3470 and 1.3520 for the day [1].
In the 1-3 week outlook, Quek highlights that a close below 1.3495 would likely lead to a break of the next support at 1.3475, which occurred as GBP/USD fell to a low of 1.3464 before rebounding [1]. Despite this, the analyst would have preferred a more decisive close below 1.3495 to confirm further downside. He adds that a break above 1.3540 would signal that the 1.3410 support is likely out of reach for now [1].
No specific market reactions or analyst opinions beyond UOB’s technical outlook are mentioned in the article. There are no references to broader market implications, economic data, or ticker symbols in the source [1].
CONCLUSION
UOB’s analysis points to continued downside pressure on the British Pound against the US Dollar, with further weakness possible but major support at 1.3410 not expected to be tested immediately. The short-term outlook suggests range-bound trading unless key resistance or support levels are breached.