According to economist Lee Sue Ann and market strategist Quek Ser Leang, of UOB Group, the pair GBP/USD could accelerate its losses to the 1.1850 area in the short term.
24 hour perspective: “The sharp fall in the pound has been a surprise (we expected it to trade in a range). The sharp and rapid fall seems exaggerated, there is room for weakness to extend to 1.1850 before stabilization is likely. The next support at 1.1800 is unlikely to appear. Resistance at 1.1950, but only a break of 1.1980 would indicate that the weakness has stabilized.”
Next 1-3 weeks: “We highlighted yesterday (Jan 05, pair at 1.2050) that the pound was likely to consolidate between 1.1900 and 1.2150 for the time being. We did not expect the subsequent sharp decline until 1.1873. Rapid buildup of momentum is likely to lead to further weakness of the GBP. support levels are located at 1.1850 and 1.1800. Downside risk is intact as long as the pound remains below the strong resistance level, currently at 1.2020.”
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.
