British Pound: Oversold slide nears 1.3335 against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann remain negative on GBP/USD after the pair eased to around 1.3370. They expect a test of last week’s low near 1.3335, though a sustained break below that level and the major 1.3300 support is seen as unlikely. On a 1–3 week horizon, downside risk persists but momentum to reach 1.3300 is questioned.

Pound stays vulnerable but oversold

"24-HOUR VIEW: GBP traded between 1.3366 and 1.3399 yesterday, closing slightly lower by 0.18% at 1.3369. There has been a tentative build-up in downward momentum. Today, GBP could test last week’s low, near 1.3335. A continued decline below this level is unlikely. We also do not expect the major support at 1.3300 to come into view. Resistance is at 1.3385; a breach of 1.3400 would suggest that the mild downward pressure has eased."

"1-3 WEEKS VIEW: We turned negative on GBP last Monday. In our latest update from last Friday (18 Sep, spot at 1.3360), we highlighted the following: “While the risk remains on the downside, conditions remain deeply oversold, and it is unclear whether GBP has sufficient momentum to reach 1.3300. On the upside, a breach of the ‘strong resistance’ at 1.3435 would indicate that the weakness in GBP is stabilising.” There is no change in our view."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)