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Cable remains under pressure and faces contention in the 1.1400 area ahead of the psychological 1.1000 mark, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday, ‘barring a move above 1.1820, GBP could drop further to 1.1400’. GBP subsequently rebounded to 1.1792 after rate cut by BOE before dropping back to end the day at 1.1480 (low has been 1.1450). While the pace of decline appears to be slowing, there is still no sign that the recent weakness in GBP is about to stabilize. From here, GPB could drop below 1.1400 and weaken to 1.1330. On the upside, only a move above 1.1820 (minor resistance is at 1.1650) would indicate that GBP is ready to take a breather from its recent dramatic sell-off.”

Next 1-3 weeks: “We highlighted yesterday the ‘2019 low near 1.1960 is beckoning to GBP’. The call was much stronger than expected as GBP staged a ‘flash-crash’ within a crash as it dived vertically and hit a low of 1.1452. We are going to be brief and point out that since the 1.3200 peak last Monday (09 Mar), GBP has posted seven consecutive days of ‘lower low’, ‘lower high’ and obviously ‘lower close’. The way the price action is playing out, the seven days could turn into several more. Support is at 1.1400, below that there is kind of a ‘vacuum’ until the round number level of 1.1000. The ‘strong resistance’ level has moved lower to 1.2150 from yesterday’s level of 1.2350.”