In opinion of FX Strategists at UOB Group, Cable could still breach the 1.3670 level in the short-term.
Key Quotes
24-hour view: “GBP dipped to 1.3670 last Friday before staging a mild recovery. Despite the bounce from the low, it is too soon to expect a sizeable rebound. For today, GBP is more likely to consolidate and trade sideways, expected to be within a 1.3670/1.3740 range.”
Next 1-3 weeks: “Last Thursday (08 Apr, spot at 1.3745), we indicated that ‘there is room for GBP to test last month’s low near 1.3670’. We added, ‘at this stage, the prospect for a sustained decline below this level is not high’. GBP subsequently dropped to 1.3670 on Friday before recovering slightly. Downward momentum has not improved by much but a clear break of 1.3670 is not ruled out. However, any further weakness is expected to struggle to move below the next support at 1.3640. On the upside, a break of 1.3780 (‘strong resistance’ level previously at 1.3840) would indicate that the current downward pressure has eased.”
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