British Pound: Downside risk extends toward 1.3300 – UOB
United Overseas Bank’s (UOB) Quek Ser Leang highlights that GBP/USD remains under pressure after four consecutive daily declines, though short-term momentum has not intensified. Intraday, the British Pound (GBP) is expected to range between 1.3335 and 1.3390.
British Pound (GBP) continues to face downside pressure, with UOB's Quek Ser Leang predicting the currency could drop as low as 1.3300 over the next few weeks. Currently, GBP/USD is expected to trade within a range of 1.3335-1.3390 intraday, with strong resistance at 1.3435. Following a sharp decline to 1.3375, analysts noted that GBP may test 1.3350 before stabilizing, though a break below this level is not expected.
Throughout the week, GBP has shown no increase in downward momentum and is more likely to range trade between 1.3335 and 1.3390. The recent pullback in US bond yields has softened US Dollar bulls, while positive comments from RBA Governor Bullock have bolstered rate hike expectations and supported the Australian Dollar. However, recent hawkish remarks from the Federal Reserve, combined with geopolitical uncertainties, have limited USD losses and capped the pair.
Meanwhile, the Japanese Yen has gained some relief from the Bank of Japan's recent interest rate hike, supporting gold prices.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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