Analysts at UOB Group, Quek Ser Leang and Peter Chia, maintain a cautiously bearish outlook for the Pound Sterling (GBP), noting that there is still a chance for GBP/USD to fall toward 1.3200 despite a slowdown in downward momentum.
Near-term view: slight downside bias within range
In their latest update, UOB analysts observed that GBP/USD traded sideways between 1.3315 and 1.3366 on Monday, closing marginally higher at 1.3336. “Despite the relatively quiet price movements, there has been a slight increase in downward momentum,” they said.
For the day ahead, the pair may edge lower within a narrower range of 1.3295 to 1.3350. However, UOB noted that the GBP “does not appear to have enough momentum to break below 1.3295” in the immediate term.
Medium-term outlook: downside potential toward 1.3200
Looking over the next one to three weeks, UOB maintains that the broader outlook remains tilted to the downside. “While downward momentum has slowed with the recent recovery, there is still a chance for GBP to decline to 1.3200,” the analysts reiterated.
They added that only a move above 1.3390 would suggest that the weakness seen since mid-October has stabilized, potentially shifting the short-term bias back to neutral.
