Cable is expected to keep the 1.3580-1.3760 range unchanged for the time being, noted FX Strategists at UOB Group.
24-hour view: “GBP traded between 1.3656 and 1.3758 yesterday, relatively close to our expected sideway-trading range of 1.3650/1.3750. The underlying tone has weakened and GBP could dip below the 1.3650 support. However, the next support at 1.3610 is unlikely to come under threat. Resistance is at 1.3695 followed by 1.3720.”
Next 1-3 weeks: “There is not much to add to our update from last Thursday (28 Jan, spot at 1.3665). As highlighted, ‘the bias is tilted to the downside but any weakness is viewed as part of a 1.3580/1.3760 range’. In other words, GBP could drift lower but a sustained decline below 1.3580 is unlikely.”