UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang suggest there is still room for further weakness in GBP/USD in the next few we
UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang suggest there is still room for further weakness in24-hour view: Our view of range trading in GBP yesterday was incorrect. Instead of trading in a range, GBP fell sharply and dropped a couple of pips below the major support at 1.2400 . Today, GBP is likely to continue to weaken, even though severely oversold conditions suggest a sustained break below 1.2355 is unlikely. The next major support at 1.
Next 1-3 weeks: Last Monday , when GBP was trading at a much higher level of 1.2590, we highlighted that “the risk for GBP appears to have shifted to the downside.” We maintain our negative GBP view, and yesterday , we pointed out that “as long as 1.2555 is not breached, there is a chance for GBP to drop to 1.2400 before stabilisation can be expected.” While our view turned out to be correct, as GBP dropped to a low of 1.
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