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Cable faces the likeliness of some consolidation in the near term ahead of a potential test of yearly lows.

Key Quotes

24-hour view: “While expectation that last Friday’s 1.2481 low is a short-term bottom was not wrong, the registered range of 1.2500/1.2540 yesterday was much narrower than our expected sideway-trading range of 1.2490/1.2560. The subdued price action offers no fresh clue and GBP is expected to continue to trade sideways, likely between 1.2490 and 1.2550″.

Next 1-3 weeks: “There is not much to add to the update from yesterday (08 Jul, spot at 1.2645). As highlighted, after the large drop last Friday that cracked the June’s low of 1.2507 (low of 1.2481), downward momentum has improved and the focus has shifted to the year-to-date low of 1.2409 (registered in early January). That said, the odds for a move to this level are not high for now (there is a relatively strong support at 1.2440). Overall, GBP is expected to stay under pressure unless it can move above 1.2590″.