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Cable is now forecasted to navigate within the 1.2900-1.3120 range in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our view for GBP yesterday to ‘dip below 1.2990’ was incorrect as it dropped to 1.3001, rebounded strongly to a high of 1.3079 before easing off to close at 1.3047 (+0.19%). The choppy price actions have resulted in a mixed outlook and for today, GBP is likely to trade between 1.2990 and 1.3080.”

Next 1-3 weeks: “We highlighted yesterday (26 Oct, spot at 1.3050) that ‘upward momentum is beginning to ease’ and added, ‘GBP has to move and stay above 1.3120 within these 1 to 2 days or the odds for further GBP strength would diminish quickly’. GBP subsequently came close to breaching our ‘strong support’ level at 1.2990 (low of 1.2993) and closed on a soft note at 1.3022 (-0.13%). Upward momentum has deteriorated further and further GBP appears unlikely. GBP is more likely to consolidate and trade between 1.2900 and 1.3120 for now.”