The Pound Sterling (GBP) could retest the 1.3050 level before a more sustained rebound is likely. In the longer run, GBP is expected to weaken further; the next level to watch is 1.3000, UOB Group FX analysts Quek Ser Leang and Peter Chia note.

May target 1.3000 below 1.3050

24-HOUR VIEW: “We indicated yesterday that GBP ‘is likely to continue to weaken, potentially to 1.3035.’ However, GBP fell less than expected to 1.3049, rebounding to close largely unchanged (1.3080, 0.05%). While downward momentum is beginning to slow, GBP could retest the 1.3050 level before a more sustained rebound is likely. The major support at 1.3000 is unlikely to come under threat. Resistance is at 1.3105, followed by 1.3120.”