Cable appears neutral so far and is seen prolonging the rangebound theme in the next weeks, noted FX Strategists at UOB Group.
Key Quotes
24-hour view: “Expectation for GBP to extend its decline was wrong as it staged a smart rebound to end the day largely unchanged (NY close of 1.3155, +0.02%). Indicators have turned ‘flat’ and the current price action is deemed as part of a consolidation phase. In other words, we expect GBP to trade sideways for today, likely within 1.3115/1.3195 range”.
Next 1-3 weeks: “GBP rebounded strongly from the 1.3080 low seen during early Sydney hours yesterday. Despite the recovery, we continue to view last Friday’s 1.3259 high as a short-term top. However, the overall outlook is still deemed as neutral but we expect GBP to trade sideways to slightly lower in the coming days, likely within a 1.3040/1.3220 range (narrower than the 1.3000/1.3220 range expected yesterday)”.
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