GBP/USD could fall to 1.2200according to Lee Sue Ann, economist at UOB Group, and Quek Ser Leang, market strategist.
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24 hour view: Although we expected GBP/USD to weaken yesterday, we were of the opinion that “1.2265 is probably out of reach.” GBP/USD fell more than expected to 1.2231 before recovering to close at 1.2295 (-0.39%). The strong rebound in oversold conditions suggests that the GBP/USD is unlikely to weaken much further. Today, GBP/USD is more likely to trade within a range, probably between 1.2240 and 1.2340.
Next 1-3 weeks: Yesterday (September 21, GBP/USD at 1.2335), we indicated that “a break of 1.2305 will not be surprising”, and added: “As conditions approach oversold, it remains to be seen if 1.2265 will be in sight” However, GBP/USD broke below 1.2265 and reached 1.2231 before bouncing. Although the negative outlook that began at the beginning of the month remains intact, the prolonged decline (both in time and prices) seems exaggerated. In other words, there may not be much room for weakness before it stabilizes. The next level to watch is 1.2200. To the upside, if GBP/USD breaks above 1.2380 (the “strong resistance” level was at 1.2420 yesterday), it would mean that the GBP/USD weakness is has stabilized.
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.
