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Occasional strength in Cable in the near term could be considered as selling opportunities, suggested FX Strategists at Scotiabank.

Key Quotes

“Sterling is benefitting from the same sort of demand patterns that are evident on the short-term EUR chart, suggesting some potential for recent losses to moderate or reverse slightly”.

“We see resistance in the 1.3015 area, however, and note that broader trends remain quite weak – Cable continues to pivot around the 40-day MA (1.2987 today) and weekly chart patterns remain clearly bearish”.

“The latter point in particular suggests that upside prospects remain limited (1.3050/75, we think) for the GBP and that gains in the short run are liable to attract selling interest”.