Cable’s outlook remains mixed for the time being, suggested FX Strategists at UOB Group.
Key Quotes
24-hour view: “While we expected GBP to weaken last Friday, we were of the view that ‘a clear break of the major support at 1.3200 appears unlikely’. However, GBP plummeted to a low of 1.3176 before snapping back up. Despite the rapid bounce from the low, the underlying tone appears soft and there is chance for GBP to dip towards 1.3200 first before a more sustained recovery can be expected. For today, a break of the low at 1.3176 appears unlikely. Resistance is at 1.3290 but the stronger level is at 1.3330.”
Next 1-3 weeks: “There is not much to add to our update from last Friday (04 Sep, spot at 1.3260). As highlighted, the outlook is mixed and GBP could trade between 1.3150 and 1.3400 for a while. The subsequent price action where GBP dropped to 1.3176 before snapping higher to end the day largely unchanged at 1.3280 reinforces our view that GBP could trade sideways for now.”
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