As a top investment manager and financial market journalist, I am closely monitoring the current situation in the GBP/USD pair. According to UOB Group FX strategists Quek Ser Leang and Lee Sue Ann, the downward momentum has slowed down, and there is a lack of confidence in a sustained break below the key support level at 1.2710.
Short-Term Analysis
In the 24-hour view, we saw GBP reaching a high of 1.2840 before retracing back to 1.2710 and then rebounding to 1.2817. The sideways trading pattern is expected to continue, with a range between 1.2745 and 1.2840.
Looking at the 1-3 weeks view, GBP has been on a downward trend since July 26th. Despite a strong rebound last Friday, the momentum has slowed down, and further weakness is likely limited to a retest of the 1.2710 level. If GBP breaks above 1.2840, it could signal a shift in the trend.
Analysis Breakdown
For those looking to invest or trade in the GBP/USD pair, it is crucial to pay attention to the key support level at 1.2710. A sustained break below this level could indicate further weakness in GBP, while a break above 1.2840 may signal a reversal in the trend.
As an expert in the financial markets, I recommend staying informed about the latest developments and using technical analysis tools to make informed decisions. Remember, always consult with a financial advisor before making any investment decisions.