In the opinion of Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group, further downward bias in GBP/USD seems to be running out of steam.
Key Quotes
24-Hour View: “Yesterday, we expected the GBP to trade sideways in the 1.2420/1.2500 range. GBP then traded between 1.2414 and 1.2471 before closing largely unchanged at 1.2437 (-0.07%). Further sideways trading would not be surprising, perhaps between 1.2400 and 1.2480.
Next 1-3 weeks: “We maintain the same view as yesterday (May 22, spot 1.2460). As highlighted, the downside momentum has eased but only a clear break above 1.2500 (no change to the ‘strong resistance’ level) would indicate that the GBP weakness that started over a week ago is over. Looking ahead, if GBP breaks below 1.2390 in the next few days, the next level to watch is 1.2350.”
