The British Pound is under mounting pressure against the US Dollar, with analysts from United Overseas Bank warning of further downside after GBP/USD dropped to 1.3183. Currency strategists Quek Ser Leang and Lee Sue Ann maintain their bearish outlook on the pair, noting that downward momentum remains modest but is steadily intensifying.
The immediate focus for forex traders centers on the critical 1.3160 support level, which UOB expects could be tested during today’s intraday session. Any breach of this floor could trigger accelerated selling from algorithmic and technical traders. On the upside, resistance sits at 1.3235, limiting potential rebounds.
The weakening Sterling comes as currency markets reassess relative economic outlooks between the UK and United States, with the Dollar maintaining strength amid persistent concerns about global growth and monetary policy divergence. Traders should monitor 1.3160 closely for signs of capitulation or support.
FXnCO Insight
Short-term GBP/USD traders should prepare for volatility around 1.3160, with stop-losses above 1.3235 for bearish positions and breakout opportunities emerging on a decisive move through support.
Source: FXStreet