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Extra upside in Cable is expected on a break above the 1.3200 mark, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “Yesterday, we held the view that GBP ‘could push above 1.3200 but it is left to be seen if it can maintain a foothold above this level’. Our view was not wrong as GBP rose to a high of 1.3207 before easing off. Indicators are giving mixed signals and GBP is likely to consolidate and trade between 1.3120 and 1.3220 for today.”

Next 1-3 weeks: “There is not much to add to our latest narrative from last Friday (06 Nov, spot at 1.3130). As highlighted, ‘while upward momentum has improved, GBP has to move and stay above the major resistance at 1.3200 before further sustained advance can be expected’. GBP edged above 1.3200 yesterday (09 Nov) but eased off after touching 1.3207 to end the day little changed at 1.3162 (+0.09%). Another attempt to move clearly above 1.3200 is not ruled out just yet and only a break of 1.3065 (no change in ‘strong support’ level) would indicate that the current upward pressure has eased.”