Continuation of selling pressure could drag GBP/USD towards the 1.2300 area in the short termaccording to economist Lee Sue Ann and market strategist Quek Ser Leang of UOB Group.
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24 hour view: Yesterday we highlighted that GBP/USD “could move lower, but any decline is likely to be part of a lower range of 1.2355/1.2415.” However, GBP/USD traded in a range of 1.2372/1.2425 before ending the day little changed at 1.2392 (+0.06%). The price evolution does not offer new clues. For today, we continue to expect GBP/USD to trade in a range of 1.2355/1.2415.
Next 1-3 weeks: Our most recent analysis was from last Friday (September 15, GBP/USD at 1.2405), where GBP/USD weakness has not stabilized, and GBP/USD could continue to weaken. We noted that “the next level to watch is the May low near 1.2305.” We continue to maintain the same opinion. However, it should be noted that the bearish momentum is beginning to slow. If GBP/USD breaks above 1.2455 (no change at the “strong resistance” level), it would mean that the GBP/USD weakness that started more than two weeks ago 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.
