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Cable is predicted to move within the 1.2750-1.3000 range in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our expectation for GBP to ‘continue to advance to 1.3035’ was wrong as it staged a sudden plunge after touching a high of 1.3007 (overnight low of 1.2864). The sharp and swift sell-off appears to be overdone and while a dip below the overnight low of 1.2864 would not be surprising, the next support at 1.2825 is unlikely to come into the picture. All in, GBP is likely to stay under pressure unless it can move above 1.2940 (minor resistance is at 1.2910).”

Next 1-3 weeks: “We have expected GBP to ‘trade between 1.2750 and 1.3000’ since last week. Yesterday (06 Oct, spot at 1.2990), we shifted to a slightly positive view and expected GBP to ‘trade with an upward bias towards 1.3070’. Our view was proven wrong quickly as GBP plunged and easily cracked our ‘strong support’ level at 1.2890 (low of 1.2864). The rapid swings have resulted in a mixed outlook and from here; GBP could trade between 1.2750 and 1.3000 for a period of time.”