Cable is seen extending the sideline theme for the time being, noted FX Strategists at UOB Group.
24-hour view: “Expectation for GBP to “edge above 1.2580” did not materialize as it slipped to a low of 1.2476 before recovering. Mixed momentum indicators suggest the current movement is part of a consolidation phase. In other words, GBP is expected to trade sideways for today, likely between 1.2460 and 1.2550”.
Next 1-3 weeks: “There is not much to add to last Friday’s (18 Jul, spot at 1.2540) update. As highlighted, while last Tuesday’s low of 1.2382 could be a short-term bottom, it is too early to expect a sustained rebound. However, the underlying tone is on the positive side and this could lead to GBP testing the top of the expected sideway trading range of 1.2430/1.2640 first”.