There is room for the British Pound (GBP) to retest the 1.2630 level; The main support at 1.2615 is unlikely to be threatened. Longer term, GBP is expected to continue weakening to 1.2615, possibly 1.2565, note UOB Group FX analysts Quek Ser Leang and Lee Sue Ann.
GBP expected to continue weakening to 1.2615
24 HOUR VIEW: “When GBP was at 1.2710 yesterday, we highlighted the following: ‘Although weakness has not stabilized, bearish momentum has eased somewhat. This, combined with oversold conditions, suggests 1.2665 may still be out range for now.’ While our view of a weaker GBP was correct, the drop that took it to a low of 1.2630 was unexpected. The bearish momentum shows tentative signs of slowing down, but there is room for GBP to retest the 1.2630 level before. stabilization likely. Main support at 1.2615 is unlikely to be threatened. Resistance at 1.2690; “It would mean that the GBP is not weakening further.”
1-3 WEEK VIEW: “In our latest narrative from two days ago (Nov 13, spot at 1.2735), we stated that ‘Bearish momentum has increased, and the next technical target is at 1.2665.’ Yesterday, the GBP fell and surpassed the target, falling to a low of 1.2630. We continue to expect the GBP to weaken, targeting a move towards 1.2615, possibly 1.2565. We will maintain our view as long as 1.2770 (the ‘strong resistance level’ was. at 1.2845 yesterday) does not break.”
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.
