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Cable risks a move lower to the 1.2820 area in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “The sudden and sharp drop in GBP yesterday is accompanied by strong momentum and further weakness would not be surprising. From here, barring a move above 1.2995 (minor resistance is at 1.2960), GBP could weaken to 1.2890. For the today, the prospect for a break of last week’s low at 1.2845 is not high.”

Next 1-3 weeks: “GBP rose to a high of 1.3083 on Monday (12 Oct) but gave up most of its gains as it plummeted by -0.99% (1.2937) yesterday (13 Oct). Downward momentum has improved, albeit not by much. From here, GBP could edge lower but in view of the lackluster momentum, any weakness is likely limited to a probe of the solid support at 1.2820. On the upside, a break of 1.3055 would indicate the current mild downward pressure has eased.”