GBP/USD: Any decline is unlikely to reach 1.3230 – UOB Group

Tentative buildup in momentum suggests Pound Sterling (GBP) is likely to trade with a downward bias vs US Dollar (USD); any decline is unlikely to reach 1.3230. In the longer run, room for GBP to continue to pull back; it remains to be seen if it can reach the major support at 1.3160, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Room for GBP to continue to pull back

24-HOUR VIEW: "Despite closing higher by 0.23% at 1.3297 yesterday, there has been a tentative buildup in downward momentum. GBP is likely to trade with a downward bias today, but given that momentum is not strong for now, any decline is unlikely to reach 1.3230. The major support at 1.3160 is not expected to come into view. Resistance levels are at 1.3300 and 1.3330."

1-3 WEEKS VIEW: "While the pullback from the late Apr high of 1.3445 has not gathered much momentum, there is room for GBP to continue to pull back. However, it remains to be seen if GBP can reach the major support at 1.3160. On the upside, a breach of 1.3360 would indicate that GBP is not pulling back further."