Cable remains in a consolidative mode and is likely to keep navigating the 1.3810-1.4020 range in the next weeks.
Key Quotes
24-hour view: “Yesterday, we highlighted that GBP ‘could dip below 1.3850’ but we were of the view that ‘1.3810 is not expected to come under threat’. However, GBP briefly dropped to 1.3809 before snapping back up to end the day little changed at 1.3895 (-0.04%). The sharp bounce from the low appears to be running ahead of itself and GBP is unlikely to strengthen much further. GBP is more likely to consolidate and trade between 1.3840 and 1.3930.”
Next 1-3 weeks: “There is no change in our view from last Thursday (11 Mar, spot at 1.3930). As highlighted, GBP ‘has moved into a consolidation phase and is expected to trade between 1.3810 and 1.4020 for now’. Note that GBP dipped one pip below the bottom of the expected range (low of 1.3809) yesterday (16 Mar) before rebounding quickly.”
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