Price action in Cable is seen within a consolidative mood in the next weeks, suggested FX Strategists at UOB Group.
Key Quotes
24-hour view: “We expected GBP to ‘consolidate and trade between 1.2435 and 1.2550’ last Friday. GBP subsequently dipped lower than expected as it touched 1.2413 before rebounding quickly. Despite the rapid bounce, the current movement still appears to be part of a consolidation phase. That said, the improved underlying tone suggests a slightly higher trading range of 1.2440/1.2530.”
Next 1-3 weeks: “As highlighted, the 1.2648 high posted on 14 Apr is deemed as a short-term top. For now, it is too early to expect a sustained decline in GBP. While GBP could move lower from here, any weakness is viewed as part of 1.2300/1.2610 range. In other words, GBP is unlikely to move clearly below 1.2300.”
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