The British pound faces renewed downside pressure against the US dollar after briefly piercing the 1.3160 support level to touch 1.3140 before staging a modest recovery to 1.3170, according to currency strategists Quek Ser Leang and Lee Sue Ann from United Overseas Bank. The pair’s volatile intraday movements signal technical weakness, with analysts projecting further probing toward the 1.3130 level in the immediate trading sessions. However, UOB strategists note that the psychologically significant 1.3110 support zone should remain intact for now, suggesting some underlying resilience in sterling despite the recent selloff. The cable pair’s struggles come as traders reassess interest rate differentials and broader risk sentiment. Currency traders and forex brokers should monitor this technical breakdown closely as breach below current levels could accelerate selling pressure.
FXnCO Insight
GBP/USD traders should prepare for volatility toward 1.3130 with stop losses positioned below 1.3110, as further weakness could trigger accelerated downside momentum and present short-term shorting opportunities.
Source: FXStreet