In view of FX Strategists at UOB Group, Cable remains neutral near term and could attempt a visit to 1.3465 in the next weeks.
Key Quotes
24-hour view: “Expectation for a lower GBP yesterday was wrong as it surged and hit an overnight high of 1.3410. Upward momentum has improved considerably and from here, a break above the 1.3425 resistance would not be surprising. However, the next resistance at 1.3465 is a rather strong level and is unlikely to yield so easily. On the downside, support is at 1.3365 but only a move below 1.3330 would indicate that a short-term top is in place”.
Next 1-3 weeks: “We shifted from a bearish to neutral stance on Monday (04 Jun, spot at 1.3355) and held the view that GBP has moved into a consolidation/correction phase. As highlighted, the shorter-term momentum is positive and this could lead to a move higher to 1.3465. At this stage, a sustained move above this level seems unlikely (next resistance is at 1.3520). On the downside, only a move back below the ‘key support’ at 1.3295 (level previously at 1.3250) would indicate that the current mild upward pressure has eased”.
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