In the opinion of economist Lee Sue Ann and UOB Group Market Strategist Que Ser Leang, GBP/USD is still at risk of further declines in the coming weeks.
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24 hour view: “We expected GBP/USD to trade in a range between 1.2385 and 1.2465 yesterday. During the London session, GBP/USD briefly rallied to 1.2470 and then plunged to end the day at 1.2366 (-0.40%). Although the rapid The dip seems to be oversold, GBP/USD could fall below 1.2350 That being said, the next major support at 1.2300 is unlikely to appear today Downside risk is intact as long as GBP/USD holds below 1.2435 (minor resistance is at 1.2400).”
Next 1-3 weeks: “We turned negative on GBP/USD about two weeks ago, on May 12, when GBP/USD traded at 1.2515. Yesterday (May 24, GBP/USD at 1.2420), we indicated that “downside risk in GBP/USD is intact as long as it doesn’t break above 1.2500”. During the American session, GBP/USD fell to a low of 1.2358, not far from our target of 1.2350. Price action continues to suggest downside risks in GBP/USD. A clear break below 1.2350 would shift attention to 1.2300. To the upside, a break of 1.2470 (“strong resistance” level previously at 1.2500) would indicate that GBP/USD does not weaken further.”
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.
