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Cable’s upside momentum could extend to the 1.2630 region in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “We expected GBP to strengthen yesterday but held the view that ‘the major resistance at 1.2580 is not expected to come into the picture’. However, GBP rose to a high of 1.2593 before easing off. The rapid rise appears to be running ahead itself and further GBP gain is unlikely. GBP is more likely to consolidate and trade between 1.2500 and 1.2600.”

Next 1-3 weeks: “We have held the same view since last Thursday (02 Jul, spot at 1.2475) wherein GBP ‘is expected to trade with an upside bias but the prospect for a sustained advance above 1.2580 is not high for now’. After trading in a quiet manner for a few days, GBP popped to a high of 1.2593 yesterday (07 Jul). Upward momentum has improved, albeit not by much. From here, GBP is still likely to trade with an upside bias and could edge up to 1.2630. On the downside, a breach of 1.2450 (‘strong support’ level was at 1.2400 yesterday) would indicate the current upward pressure has eased.”