The British Pound is maintaining a weak bias against the US Dollar as GBP/USD continues its corrective phase following a recent test of April lows, according to United Overseas Bank currency strategists Quek Ser Leang and Lee Sue Ann. The pair touched support near the critical 1.3160 level before staging a rebound, marking a pivotal technical moment for the currency pair.
The development signals ongoing pressure on Sterling despite the recent bounce, with traders closely monitoring whether the April low will hold as key support. The corrective movement suggests GBP/USD remains vulnerable to further downside if this level fails, creating heightened uncertainty for forex markets. Currency traders and brokers should watch this threshold carefully as a decisive break below 1.3160 could trigger accelerated selling and stop-loss orders, potentially opening the door to deeper Sterling losses against the Dollar.
FXnCO Insight
Traders should position defensively on GBP/USD with tight stops above recent rebound highs, as failure to hold 1.3160 support could trigger significant downside momentum.
Source: FXStreet