In opinion of FX Strategists at UOB Group, GBP/USD risks extra decline below the 1.3050 level in the next weeks.
Key Quotes
24-hour view: “We expected GBP to ‘trade sideways within a range of 1.3060/1.3140’ yesterday. GBP subsequently traded in a choppy manner between 1.3052 and 1.3157 before closing unchanged at 1.3095. Further choppy actions action is not ruled out, likely within a range of 1.3050/1.3150.”
Next 1-3 weeks: “Our update from yesterday (29 Mar, spot at 1.3100) still stands. As highlighted, downward momentum has improved slightly but GBP has to close below 1.3050 before a sustained decline is likely. The chance for GBP to close below 1.3050 is not high for now but it would remain intact as long as GBP does not move above 1.3195 (‘strong resistance’ level) within these few days. Looking ahead, the next support below 1.3050 is at 1.3000.”
