In view of FX Strategists at UOB Group, Cable has moved into a consolidative phase, likely between 1.2800 and 1.3000 for the time being.
Key Quotes
24-hour view: “We highlighted yesterday, “barring a move above 1.2925 (minor resistance at 1.2905), GBP is expected to drift lower to 1.2845″. While GBP stayed below 1.2925 (high of 1.2918), expectation for a drift to 1.2845 did not materialize as it traded in a quiet manner before closing largely unchanged (1.2881, +0.01%). Momentum indicators are mostly neutral now and GBP could continue to trade in quiet manner from here. Expected range for today, 1.2860/1.2925″.
Next 1-3 weeks: “Our view from one week ago (29 Oct, spot at 1.2855) wherein GBP is “expected to trade sideways” still stands. As highlighted, further GBP strength is not ruled out but the recent top around 1.3000/1.3010 is ‘high-water mark’ and would be a tough level to crack. Meanwhile, GBP could trade sideways within a 1.2800/1.3000 range for a while more”.
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