GBP/USD will continue to fall as long as it trades below 1.2500point out Lee Sue Ann, economist at UOB Group, and Quek Ser Leang, Market Strategist.
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24 hour view: “We did not anticipate increased volatility as GBP/USD plunged to 1.2373 and then rallied again to close the day at 1.2416 (-0.15%). The strong bounce from the low suggests that GBP/USD is unlikely to much weaker. Today, GBP/USD is more likely to trade in a range between 1.2385 and 1.2465.”
Next 1-3 weeks: “Two days ago (May 22, GBP/USD at 1.2460), we highlighted that bearish momentum has slowed, but only a clear break above 1.2500 would indicate that GBP/USD weakness has come to an end. We indicated yesterday that “if GBP/USD breaks below 1.2390 in the next two days, the next level to watch is 1.2350.” During the London session, GBP/USD broke below 1.2390 and then rebounded strongly from 1.2373. Despite the break of 1.2390, there is no clear momentum building. That being said, downside risk remains as long as GBP/USD does not break above 1.2500.”
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.
