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Cable’s price action in the next weeks should remain contained within the broad 1.2300/1.2610 range, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday that GBP ‘could dip below the overnight low towards 1.2405 before the weakness should stabilize’. Our expectation did not quite materialize as GBP rebounded quickly after touching 1.2409. Downward pressure has eased considerably and 1.2409 could be a short-term bottom. However, it is too soon to expect a sustained rebound from here. All in, GBP is more likely to consolidate and trade between 1.2435 and 1.2550 for today.”

Next 1-3 weeks: “After closing higher for six days in a row, the sudden and sharp drop in GBP yesterday came as a surprise. While the 1.2648 high posted on Tuesday (14 Apr) is deemed as a short-term top, it is too early to expect a sustained decline in GBP. From here, GBP could move lower but for now, any weakness is viewed as part of a 1.2300/1.2610 range.”