Both the British Pound (GBP) and the Euro (EUR) have experienced sharp declines against the US Dollar, prompting UOB analysts Quek Ser Leang and Lee Sue Ann to highlight continued downside risks for both currency pairs. For GBP/USD, after last week's plunge to a low of 1.3332, the analysts note that the pair remains under pressure, with scope for another test of 1.3300 before any recovery is expected. A clear break below 1.3300 could open the way toward 1.3240, while resistance at 1.3410 caps any upside. The broader range for GBP/USD includes key supports at 1.3210 and 1.3160, and resistance levels at 1.3360 and 1.3390. GBP dipped to 1.3307 in the early London session before recovering to a high of 1.3369, ultimately closing marginally higher by 0.01% at 1.3338. Downward momentum has slowed, but further downside remains possible if GBP breaks below 1.3300, with the next support at 1.3275 unlikely to come under threat in the immediate term [1].
Similarly, EUR/USD saw a sharp drop to a low of 1.1516 last Friday. The analysts describe the current price action as short-term consolidation between 1.1505 and 1.1555, but maintain a bearish 1–3 week view, targeting further weakness toward 1.1445 as long as EUR remains below the strong resistance at 1.1600. A break of 1.1555 on a multi-month horizon could open the way to the 1.1390/1.1410 support zone. EUR dipped to 1.1499, recovered to 1.1554, and settled at 1.1534 (+0.13%). The analysts view these movements as part of a consolidation phase, but note that downward momentum is increasing and further declines are likely if EUR holds below 1.1600 [2].
Market implications from both analyses suggest continued caution for traders and investors, as both GBP/USD and EUR/USD remain vulnerable to further downside. The technical outlooks provided by UOB emphasize the importance of key support and resistance levels, with the potential for additional declines if these levels are breached. No specific analyst opinions or forward-looking statements regarding broader market impacts or economic factors are provided beyond the technical forecasts [1][2].
CONCLUSION
UOB analysts highlight persistent downside risks for both GBP/USD and EUR/USD following recent sharp declines, with further weakness possible if key support levels are breached. The market sentiment remains bearish, and traders should monitor support and resistance levels closely for signs of stabilization or renewed selling pressure. No broader market reactions or economic commentary are discussed in the sources.