The Pound Sterling (GBP) is currently facing some challenges in the financial markets, with analysts noting a potential weakening trend. However, the strong support level at 1.3145 seems to be holding firm, preventing a significant decline in the currency’s value. According to UOB Group analysts Quek Ser Leang and Lee Sue Ann, the momentum for GBP to rise to 1.3320 has slowed down, indicating a possible shift in the currency’s direction.
Short-Term Forecast: GBP Testing 1.3145
Looking at the 24-hour view, GBP experienced an unexpected tumble recently, dropping by 0.53% to 1.3191. Despite an increase in momentum, the currency has not been able to break the strong support level at 1.3145, with another support level at 1.3165. Resistance is currently at 1.3220, and a breach of 1.3245 could signal a potential reversal in GBP’s weakening trend.
1-3 Weeks Outlook: Following a significant rise in GBP last Friday, analysts anticipated a continued upward momentum towards 1.3320. However, a sharp drop of 0.53% to 1.3191 has raised concerns about the currency’s future direction. While the strong support at 1.3145 remains intact, the rapid slowdown in momentum suggests a diminished likelihood of GBP reaching 1.3320. To avoid a further decline, GBP must surpass and maintain levels above 1.3250 in the next 1 to 2 days.
Analysis Breakdown:
Overall, the current outlook for Pound Sterling (GBP) suggests a potential weakening trend, with a key support level at 1.3145. While short-term fluctuations may occur, breaking above 1.3250 could indicate a reversal in the currency’s direction. It is important for investors and traders to closely monitor GBP’s movements in the coming days to make informed decisions about their financial portfolios.