Downward pressure could force the GBP/USD to revisit the 1.1850 area in the short term, according to forex strategists at UOB Group, Lee Sue Ann, and Quek Ser Leang.
24 hour outlook: “Yesterday, we thought GBP weakness could extend to 1.1880 before stabilization is likely. Pound subsequently fell to 1.1877 before bouncing. Rebound amid oversold conditions suggests pound weakness is In other words, the GBP is unlikely to weaken further. For today, it is more likely to trade between 1.1870 and 1.1980″.
Next 1-3 weeks: “Our update from yesterday (July 06, pair at 1.1955) still stands. As we highlighted, the downward momentum following Tuesday’s sharp drop is likely to lead to further pound weakness. The next support is at 1.1850. Overall, only a break of 1.2030 (‘strong resistance’ level was 1.2075 yesterday) would indicate that the GBP’s phase of weakness that started a week ago has run its course. Looking ahead, the next support below 1.1850 is at 1.1800.”
Source: Fx Street
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