The Pound Sterling (GBP) could continue to decline; oversold weakness suggest it is unlikely to threaten the support at 1.3250. In the longer run, more than week-long GBP strength has ended; it is likely to trade in a 1.3200/1.3430 range for the time being, UOB Group FX strategists Quek Ser Leang and Lee Sue Ann note.

Likely to trade in a 1.3200/1.3430

24-HOUR VIEW: “We were of the view that GBP ‘could rise and potentially reach 1.3450’ yesterday. However, after rising to 1.3430, GBP fell and broke below a few support levels, reaching a low of 1.3314. While GBP could continue to decline today, oversold conditions suggest that any weakness is unlikely to threaten the support at 1.3250 (minor support is at 1.3290). On the upside, resistance levels are at 1.3360 and 1.3390.”