The British Pound against the US Dollar (GBP/USD) is still at risk of falling further, according to Economist Lee Sue Ann and Markets Strategist Quek Ser Leang from UOB Group. They noted that the currency pair has been capped at 1.2100 and that a sustained rise above this level is unlikely.
In their 24-hour view, the experts said that their prediction of GBP breaking 1.1960 proved to be correct, as the currency dropped to 1.1915. However, they did not anticipate the sharp bounce that followed, with GBP closing higher by 0.46% at 1.2043. They believe that any advance is part of a higher trading range of 1.1990/1.2075 and that a sustained rise above 1.2075 is unlikely.
For the next 1-3 weeks, the experts said that the downward momentum has improved, albeit not much, and that GBP is likely to break 1.1960, with the next support at 1.1900. They added that, even though GBP dropped close to 1.1900 before rebounding, as long as the ‘strong resistance’ at 1.2100 is not breached within the next few days, there is still a slim chance for GBP to break below 1.1900.
Overall, the experts from UOB Group believe that the GBP/USD currency pair still risks a deeper pullback, as 1.2100 caps the upside. They noted that the downward momentum has improved, although not significantly, and that the currency pair is likely to break 1.1960, with the next support at 1.1900. However, they also said that a sustained rise above 1.2075 is unlikely, and that there is still a slim chance for GBP to break below 1.1900.
In order to determine the future of the currency pair, investors should pay close attention to the developments in the global markets. In particular, they should monitor the performance of the US Dollar and the British Pound, as well as the geopolitical events that may influence the exchange rate between the two currencies. Additionally, investors should also be aware of the economic data releases, such as the US Non-Farm Payrolls and the UK GDP figures, which can have a major impact on the GBP/USD currency pair.
Overall, the GBP/USD currency pair is still at risk of falling further, according to the experts from UOB Group. They noted that the currency pair has been capped at 1.2100 and that a sustained rise above this level is unlikely. In order to determine the future of the currency pair, investors should pay close attention to the developments in the global markets, as well as the economic data releases. By doing so, they can gain a better understanding of the currency pair and make more informed decisions when trading.
