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In opinion of FX Strategists at UOB Group, Cable is seen extending the rally on a break above the 1.3810 level in the short-term.

Key Quotes

24-hour view: “Yesterday, we noted that ‘upward momentum has not improved’ and we expected GBP to ‘trade between 1.3740 and 1.3810’. GBP subsequently traded within a narrower range than expected (1.3762/1.3809). The price actions offer no fresh clues and GBP is likely to trade sideways for today, expected to be between 1.3740 and 1.3800.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (15 Apr, spot at 1.3780). As highlighted, while shorter-term momentum has not improved by much, a break of 1.3810 is not ruled out (note that GBP tested 1.3810 twice the past two days with high of 1.3809). However, GBP has to close above 1.3810 before a sustained advance can be expected (next resistance is at 1.3850). At this stage, the prospect for such a move is not high but it would remain intact as long as GBP does not move below 1.3715 within these few days.”