Further losses could drag GBP/USD to the 1.2530 zone in the coming weeksas suggested by Lee Sue Ann, Economist at UOB Group, and Quek Ser Leang, Market Strategist.
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24 hour view: Last Friday, GBP/USD fell to a low of 1.2548. We highlighted yesterday that “the bearish momentum has not increased much; this, combined with the oversold conditions, suggests that GBP/USD is unlikely to weaken much further” We expected GBP/USD to trade sideways in a 1.2545/ range. 1.2625. In line with our expectations, GBP/USD traded sideways, albeit in a tighter range than expected (1.2568/1.2609). Sideways movement seems likely to continue. The slightly firm underlying tone suggests a range top at 1.2670/1.2650.
Next 1-3 weeks: Our update from last Friday (August 25, GBP/USD at 1.2600) still stands. As we have highlighted, the recent build in bearish momentum suggests that GBP/USD is likely to weaken to 1.2530, possibly 1.2480. We will continue to hold the same view as long as GBP/USD remains below the “strong resistance” of 1.2685 (no change from yesterday). That being said, GBP/USD could consolidate for 1-2 days first.
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.
