Economist Lee Sue Ann and market strategist Quek Ser Leang of UOB Group suggest that GBP/USD could revisit the 1.2040 area on the near-term horizon.
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24-hour outlook: We expected GBP/USD to “continue to weaken yesterday.” However, we are of the opinion that “main support at 1.2040 could be out of reach.” GBP/USD weakened less than expected to 1.2070 before bouncing. The bounce into oversold conditions suggests that GBP/USD is unlikely to weaken further. Today, GBP/USD is more likely to trade in a range, probably between 1.2100 and 1.2170.
Next 1-3 weeks: Our update from yesterday (October 26, GBP/USD at 1.2105) is still valid. As we have highlighted, bearish momentum is starting to improve. As long as GBP/USD remains below 1.2200 (no change at the “strong resistance level”), GBP/USD is likely to test the early October low near 1.2040. Breaking this main support could trigger a further decline to 1.2000.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
