The British Pound (GBP) remains under pressure against the US Dollar (USD) after a sharp intraday drop, with analysts at UOB Group warning that renewed downward momentum could drive the pair toward the 1.3210 support level.
Short-Term View: Risk of Another Dip Before Stabilization
UOB’s 24-hour outlook notes that while GBP/USD initially tested the 1.3370 resistance (reaching a high of 1.3368), it subsequently fell sharply to a low of 1.3248.
Analysts describe the move as “excessive,” yet caution that there are still no clear signs of stabilization.
“There is a chance for GBP to test 1.3240, though given the oversold conditions, a sustained drop below this level appears unlikely,” UOB said.
The next key support is at 1.3210, but the bank views this level as unlikely to be reached for now.
On the upside, resistance is seen at 1.3295, and a break above 1.3310 would suggest that the weakness is starting to stabilize.
Medium-Term View: Renewed Momentum Signals Further Weakness
In the 1–3 week horizon, analysts recall that on October 24 (GBP/USD at 1.3325), they highlighted the need for a close below 1.3295 to confirm continued downside momentum — a condition that was not met at the time.
However, following Monday’s sharp reversal to 1.3248, sentiment has shifted.
“The renewed downward momentum suggests GBP could decline further toward 1.3210,” UOB analysts noted.
They added that the strong resistance level has now been revised lower to 1.3340 (previously 1.3385), with any break above this level likely signaling a return to range trading rather than continued weakness.
