After last week's decline, GBP/USD is still under pressure, with room for another test of 1.3300 before a recovery, according to Quek Ser Leang and Lee Sue Ann of UOB. They emphasize that the broader pair is in a range with important supports at 1.3210 and 1.3160, and that a clean break below 1.3300 would open the path for 1.3240 while resistance at 1.3410 caps.
Pound continues to be under pressure close to crucial support
"24-HOUR VIEW: We said the following yesterday in response to the GBP's precipitous decline, which ended last Friday at a low of 1.3332: "The GBP has room to test 1.3300 before stabilization may be anticipated, even though the rapid decline seems excessive. Although it is not impossible for the GBP to break below this level, the extremely oversold conditions indicate that it may not be able to do so. Resistance levels are around 1.3360 and 1.3390 on the upside. GBP did not quite test 1.3300, falling to 1.3307 in the early London session before rising to a high of 1.3369. GBP slipped from the high and ended the day slightly higher by 0.01% at 1.3338. The GBP could touch 1.3300 before further rebound is anticipated, despite the fact that the negative momentum has somewhat moderated. It is unlikely that the next support level at 1.3275 will be threatened. 1.3355 and 1.3370 are the points of resistance.
"1-3 WEEKS VIEW: Our update from yesterday, June 8, at 1.3330, is still in effect. As stated, even though last Friday's steep decrease "highlights the continuing GBP weakness, GBP must break firmly below 1.3300 before additional declines toward 1.3240 may be expected." As long as GBP is below 1.3410 (no change in the "strong resistance" level), there is no chance that it will break cleanly below 1.3300.
Pound continues to be under pressure close to crucial support
"24-HOUR VIEW: We said the following yesterday in response to the GBP's precipitous decline, which ended last Friday at a low of 1.3332: "The GBP has room to test 1.3300 before stabilization may be anticipated, even though the rapid decline seems excessive. Although it is not impossible for the GBP to break below this level, the extremely oversold conditions indicate that it may not be able to do so. Resistance levels are around 1.3360 and 1.3390 on the upside. GBP did not quite test 1.3300, falling to 1.3307 in the early London session before rising to a high of 1.3369. GBP slipped from the high and ended the day slightly higher by 0.01% at 1.3338. The GBP could touch 1.3300 before further rebound is anticipated, despite the fact that the negative momentum has somewhat moderated. It is unlikely that the next support level at 1.3275 will be threatened. 1.3355 and 1.3370 are the points of resistance.
"1-3 WEEKS VIEW: Our update from yesterday, June 8, at 1.3330, is still in effect. As stated, even though last Friday's steep decrease "highlights the continuing GBP weakness, GBP must break firmly below 1.3300 before additional declines toward 1.3240 may be expected." As long as GBP is below 1.3410 (no change in the "strong resistance" level), there is no chance that it will break cleanly below 1.3300.
