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02/10/24
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Pound Sterling Faces Pressure: Will Support Levels Hold Amidst Decline?
Recent market movements indicate a potential continued decline in the value of the Pound Sterling (GBP). Although the currency has reached oversold levels, analysts suggest that a significant drop beyond the critical support level of 1.3210 may be necessary for further depreciation.
In the short term, GBP experienced a notable decrease, culminating in a low of 1.3237 before settling at 1.3287, reflecting a decline of 0.67%. While this rapid fall has positioned GBP into oversold territory, further drops cannot be discounted. However, it seems unlikely that the currency will reach the key support threshold of 1.3210 today. An additional support level exists at 1.3235, which may hold GBP above the critical 1.3210 level for now. Traders looking for upward movement may find any rebounds limited, with resistance anticipated at 1.3330, and a further minor resistance identified at 1.3300.
Extending the outlook to the next few weeks, previous assessments indicated that GBP might be navigating a range between 1.3300 and 1.3430. The recent drop, however, was unforeseen and has shifted market momentum. The analysis suggests GBP is likely to continue its downward trajectory but must breach the 1.3210 support level to sustain a prolonged decline. If GBP maintains its position below 1.3355, the probability of a decisive break below 1.3210 increases substantially.
In conclusion, while the Pound Sterling faces significant pressure, its future movements will depend on whether it can withstand the current support levels and how traders react to upcoming financial data and market sentiment.
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