Cable’s outlook stays neutral for the time being, according to FX Strategists at UOB Group.
Key Quotes
24-hour view: “Expectation for the rebound in GBP to ‘extend to 1.2975’ did not materialize as it slipped after touching 1.2953. Upward pressure has dissipated and the current movement is viewed as the early stages of consolidation phase. For today, GBP is expected to trade between 1.2880 and 1.2930″.
Next 1-3 weeks: “There is not much to add as GBP retreated after touching 1.2953 and ended the day little changed at 1.2914 (-0.09%). As highlighted yesterday (28 Nov, spot at 1.2930), ‘upward momentum has not improved by much’ and ‘the outlook for GBP is still mixed’. In other words, we continue to expect GBP to trade between the month-to-date low near 1.2770 and last month’s peak of 1.3012 for a while more. Looking forward, GBP edge above 1.3012 first but at this stage, the prospect for a sustained rally above this level is not high”.
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