The British pound is under immediate pressure against the US dollar after plunging to 1.3493, testing a critical support level that analysts are closely monitoring. United Overseas Bank currency strategists Quek Ser Leang and Lee Sue Ann warn the sharp decline appears overextended in the near term, suggesting the pair may stabilize temporarily within a tight range.
UOB expects GBP/USD to consolidate between 1.3495 and 1.3535 during today’s trading session as the market digests the sudden downward move. The 1.3495 level now represents crucial support, with a breach potentially triggering further selling pressure and losses for sterling. Traders and forex desks should watch this narrow band closely as volatility remains elevated.
The analysis comes as currency markets continue processing broader dollar strength and shifting expectations around central bank policy divergence between the Federal Reserve and Bank of England.
FXnCO Insight
Set tight stop-losses on GBP/USD long positions below 1.3495, as a break of this support could accelerate downside momentum toward the next technical level.
Source: FXStreet