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Cable is expected to extend the broader consolidative mood amidst the prevailing mixed outlook, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Expectation for GBP to ‘trade sideways’ yesterday was incorrect as it surged to a high of 1.3110. While the rapid rise appears to be running ahead of itself, there is room for the advance in GBP to test the 1.3125 resistance first before easing off. For today, a move beyond 1.3150 is unlikely. Support is at 1.3065 followed by 1.3030.”

Next 1-3 weeks: “After trading in a quiet manner and within a narrow range on Wednesday, GBP suddenly surged to a high of 1.3110 yesterday (30 Jan). The price action did not change our view from Tuesday (28 Jan, spot at 1.3060) wherein GBP is expected to “trade in an erratic manner between 1.2900 and 1.3200”. To look at it another way, the price action from yesterday offers no fresh clues.”