GBPUSD18092020 1GBP plummeted to an overnight low of 1.3108 before closing on a weak note (1.3124, -0.75%). While the rapid and sharp drop appears to be overdone, there is room for GBP to dip to 1.3080 first before the current weakness should stabilize. The next support at 1.3040 is likely out of reach. Resistance is at 1.3150 followed by 1.318.

The rapid loss in momentum suggests GBP is not ready to move higher just yet. From here, GBP could trade sideways within a broad 1.3000/1.3250 range for a period of time.