In opinion of FX Strategists at UOB Group, Cable faces potential losses in the next weeks.
Key Quotes
24-hour view: “Last Friday, GBP dropped to 1.3657, snapped back up to 1.3750 before easing off to close at 1.3693 (-0.23%). The price actions have resulted in a mixed outlook and for today, GBP is likely to trade sideways, expected to be within a 1.3650/1.3750 range.”
Next 1-3 weeks: “There is not much to add to our update from yesterday (28 Jan, spot at 1.3665). As highlighted, ‘the bias is tilted to the downside but any weakness is viewed as part of a 1.3580/1.3760 range’. While we did not quite anticipate the sharp overnight bounce, the risk still appears to be tilted to the downside. A break of 1.3760 is not ruled out but GBP has to close above the next major resistance at 1.3800 before a sustained advance can be expected.”
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