Cable is seen navigating the 1.2280-1.2500 range for the next weeks, suggested FX Strategists at UOB Group.
Key Quotes
24-hour view: “We noted last Friday that GBP “has picked up some momentum” and expected it to strengthen but were of the view that “1.2450 is unlikely to come into the picture”. However, GBP spiked to a high of 1.2466 during NY hours before easing off quickly. Upward pressure has eased and for today, GBP is expected to consolidate, likely staying within Friday’s 1.2354/1.2466 range.”
Next 1-3 weeks: “The break of the ‘strong support’ level at 1.2370 on Wednesday (06 May) suggests that last week’s 1.2644 high could be a short-term top. That said, downward momentum is lackluster and it is too early to expect a sustained decline. From here, GBP is more likely to consolidate and trade between 1.2280 and 1.2500 for a period.”
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