According to UOB Group currency strategists Quek Ser Leang and Lee Sue Ann, the GBP/USD could extend the decline to the 1.1630 area in the coming weeks.
24 hour outlook: “We expected the pound to weaken yesterday, but were of the opinion that the main support at 1.1630 was probably out of reach. Our opinion was not wrong, as it fell to 1.1650 before rebounding. The rebound amid challenging conditions Oversold suggests the pound is unlikely to weaken further. For today, the pair is likely to trade sideways, with a range expectation of 1.1670/1.1760“.
Next 1-3 weeks: “Yesterday, we noted that bearish momentum had rapidly improved and the pound could weaken towards 1.1630. Subsequently, the pair fell to 1.1650 before bouncing. No change in our opinion for now, although short-term oversold conditions could lead a couple of days of consolidation first. Overall, just a break of 1.1800 (no change in yesterday’s ‘strong resistance’ level) would indicate the pound is unlikely to weaken further.”
Source: Fx Street
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