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Cable is seen navigating within the 1.2950-1.3160 range for the time being, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our expectation for GBP to trade sideways was incorrect as it popped to a high of 1.3143 before dropping back down quickly and ended the day slightly higher at 1.3086 (+0.14%). The rapid swings have resulted in a mixed outlook. For today, GBP could trade sideways, likely not straying much out of Friday’s 1.3048/1.3143 range.”

Next 1-3 weeks: “Last Tuesday (11 Aug, spot at 1.3075), we indicated that ‘a short-term top is in place’ and held the view that GBP ‘is likely to drift lower but any weakness is viewed as part of a 1.2950/1.3160 range’. However, aside from a brief dip to 1.3006, GBP traded mostly sideways before popping to a high of 1.3143 last Friday. The mild downward pressure has eased but the current movement is still viewed as part of a consolidation phase. In other words, we continue to hold the view that GBP is trading within a 1.2950/1.3160 range.”