The additional weakness in the GBP/USD should find a hard support level at 1.2275, according to the economist at UOB Group Lee Sue Ann and market strategist Quek Ser Leang.
24 hour perspective: “After the Pound fell to 1.2353 on Monday, we noted yesterday that despite the decline, the bearish momentum had not improved much. However, we were of the opinion that there was scope for the GBP to fall below 1.2345 before it is likely a stabilization. The pound did not fall below 1.2345, but rebounded to a high of 1.2449. The rapid rebound seems exaggerated and it is unlikely that the pound will advance further. Today, it is more likely to trade within a range, which is expected to be between 1.2385 and 1.2455“.
Next 1-3 weeks: “Two days ago (Apr 17, pair at 1.2405), we highlighted that GBP could move lower, but any decline was unlikely to clearly break below the main support at 1.2275. We continue to hold the same view, albeit after yesterday’s bounce , heThe odds of the pound going down have decreased. All in all, only a break of 1.2475 (no change at the ‘strong resistance’ level) would indicate that the downside bias has faded.”
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.
