Cable’s stance stays neutral and is expected to navigate within a consolidative theme in the next weeks, noted FX Strategists at UOB Group.
Key Quotes
24-hour view: “GBP cracked the strong 1.2800 support and hit a low of 1.2787 before rocketing higher and blast past several resistance levels with ease (high of 1.2983). The immediate outlook is unclear after the volatile price action and further choppy trading would not be surprising. That said, GBP is likely to stay within the 1.2787/1.2983 range registered yesterday”.
Next 1-3 weeks: “We indicated yesterday that there is “room for GBP to test the 1.2740 support”. GBP subsequently dipped to a low of 1.2787 before rocketing higher and took out the ‘key resistance’ at 1.2975 (overnight high of 1.2983). The recent mild downward pressure has clearly eased but despite the sharp bounce, we are not convinced that GBP has moved into a bullish phase. We prefer to continue to hold a neutral stance and expect GBP to trade sideways, likely within a broad 1.2800/1.3050 range”.
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