Analysts flag rising downside momentum for the pound, with a daily close below 1.3340 potentially triggering further declines.
United Overseas Bank analysts expect GBP/USD to trade between 1.3350 and 1.3400 intraday after a modest rebound from recent lows. However, they warn that rapidly building downside momentum could push the pair toward 1.3300 if it closes below 1.3340 in the coming weeks.
The pound dropped to a low of 1.3360 two days ago, with momentum indicators now signaling potential further weakness. Resistance has been lowered to 1.3435, while support near 1.3340 remains critical. The broader outlook remains range-bound, though pressure persists.
Analysts noted that GBP weakened less than expected to 1.3355 before closing at 1.3376, but momentum has since flattened, suggesting consolidation ahead.