Cable is forecasted to extend the consolidative mood likely between 1.2280 and 1.2500 in the next weeks, noted FX Strategists at UOB Group.
Key Quotes
24-hour view: “GBP had a ‘wild day’ yesterday, as it rose to 1.2418, plunged to 1.2266 before snapping back up to end the day slightly higher at 1.2364 (+0.18%). The robust bounce from the low has picked up some momentum and from here, GBP could edge yesterday’s 1.2418 peak. That said, the next resistance at 1.2450 is unlikely to come into the picture. Support is 1.2360 followed by 1.2330.”
Next 1-3 weeks: “The break of the ‘strong support’ level at 1.2370 on Wednesday (06 May) suggests that last week’s 1.2644 high could be a short-term top. That said, downward momentum is lackluster and it is too early to expect a sustained decline. From here, GBP is more likely to consolidate and trade between 1.2280 and 1.2500 for a period.”
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