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In opinion of FX Strategists at UOB Group, Cable’s upside momentum could extend to the 1.3760 level in the next weeks.

Key Quotes

24-hour view: “We expected GBP to ‘trade sideways within a 1.3600/1.3700 range’. However, GBP popped briefly to 1.3712 before easing off to end the day on a firm note at 1.3689 (+0.38%). Upward momentum has improved, albeit not by much. The bias is on the upside but the major resistance at 1.3760 is likely out of reach for now (1.3730 is already quite a strong level). Support is at 1.3655 followed by 1.3620.”

Next 1-3 weeks: “There is not much to add to our update from Wednesday (13 Jan, spot at 1.3670). As highlighted, GBP is expected to trade with an upward bias but any advance is expected to face solid resistance at 1.3760. While shorter-term momentum has improved slightly, 1.3760 may not come into the picture for another few more days. Overall, the current upward bias in GBP is deemed intact as long as it does not move below 1.3590 (‘strong support’ level previously at 1.3550).”