In opinion of FX Strategists at UOB Group, Cable is forecast to keep the consolidative mood unchanged for the time being, likely between 1.3820 and 1.4020.
Key Quotes
24-hoour view: “While we highlighted last Friday that ‘risk remains on the downside’, we held the view that ‘any weakness is unlikely to break the support at 1.3860’. Our view was not wrong as GBP dropped to a low of 1.3870. Downward momentum has improved a tad and for today, GBP could dip below 1.3860 but the major support at 1.3820 is not expected to come under threat (there is another support at 1.3840). Resistance is at 1.3915 followed by 1.3940.”
Next 1-3 weeks: “Our latest narrative from last Thursday (24 Jun, spot at 1.3965) still stands. As highlighted, we view the current movement as part of a consolidation and GBP could trade within a 1.3820/1.4020 range for a while more.”