GBP/USD: Testing Support Near 1.3300 – UOB

GBP/USD is currently trading around 1.33191, after dipping to 1.3322 and closing at 1.3342, with initial downside momentum emerging. UOB analysts Quek Ser Leang and Lee Sue Ann believe the pair could fall further to 1.3315, while 1.3300 is viewed as a major support level that may be difficult to break in the near term.

**Short-Term Support and Multi-Week Outlook**

From a multi-week perspective, if bearish momentum persists, the July low of 1.3274 would be the next level to watch. The analysts emphasize that the fate of 1.3300 as a major support level will determine whether further downside space opens up. The pair is already quite close to this support, and market focus is on whether it can be effectively defended.

**Technical Picture and Market Context**

On the technical front, after breaking below the key four-week support at 1.3460, sterling still has some room to fall in the short term, with some market views setting a near-term target around 1.3200 to 1.3250. However, some traders believe that if the price returns to the previous low near 1.3200, a double-bottom support could form and trigger a rebound, with upside targets in the 1.3500 to 1.3600 range. Current bullish-bearish divergence is pronounced, and the fate of the 1.3300 level will be key to short-term direction.

**Risk Warning**

Uncertainty in UK politics, as well as divergence among Bank of England policymakers over inflation risks and slowing economic growth, are both weighing on sterling. The market is closely watching for any clues that could signal future monetary policy direction, which may intensify exchange rate volatility in the near term.