In opinion of FX Strategists at UOB Group, Cable is still predicted to navigate within the 1.3820-1.4020 range in the next weeks.
Key Quotes
24-hour view: “We highlighted yesterday ‘upward pressure is beginning to ease and GBP is unlikely to strengthen much further’ and we expected GBP to ‘trade between 1.3930 and 1.4005’. We did not anticipate the rapid drop to 1.3889. The risk for GBP remains on the downside but any weakness is unlikely to break the support at 1.3860 (minor support is at 1.3890). Resistance is at 1.3945 followed by 1.3970.”
Next 1-3 weeks: “There is not much to add to our update from yesterday. As highlighted, we continue to view the current movement in GBP as part of a consolidation and GBP could trade within a 1.3820/1.4020 range for a while more.”
