Cable aims to further gains on a break above 1.3280, noted FX Strategists at UOB Group.
Key Quotes
24-hour view: “We expected GBP to strengthen yesterday but we were of the view that it ‘may not be able to maintain a foothold above this level’. We indicated that the ‘next resistance is at 1.3280’. GBP subsequently rose to a high of 1.3270 before closing at 1.3250 (+0.36%). Upward momentum has improved, albeit not by much. There is scope for GBP to push above 1.3280 but last week’s top at 1.3322 is likely out of reach for now. The mild upward pressure is deemed as intact as long as GBP does not move below 1.3190 (minor support is at 1.3220).”
Next 1-3 weeks: “There is not much to add to our update from yesterday. As highlighted, upward momentum has improved but not by much. GBP has to close above 1.3280 in order to indicate that it ready to move towards last week’s top at 1.3322. The slightly positive out outlook is deemed as intact as long as GBP does not move below 1.3160 (‘strong support’ level was at 1.3130 yesterday).”
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