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UOB Group’s FX Strategists noted the outlook for Cable remains negative for the next weeks.

Key Quotes

24-hour view: “Yesterday, we highlighted that ‘while oversold, the swift and sharp decline in GBP has room to move to 1.3700, with decent odds for extension to 1.3660’. While GBP breached 1.3700 as expected, the subsequent weakness did not reach 1.3660 (low of 1.3675). Conditions remain oversold but there is scope for the weakness in GBP to test 1.3660 first before stabilizing. For today, the next support at 1.3630 is unlikely to come into the picture. On the upside, a break of 1.3755 (minor resistance is at 1.3730) would indicate the current downward pressure has eased.”

Next 1-3 weeks: “We turned negative on GBP yesterday (24 Mar, spot at 1.3745) and there is no change in our view. GBP easily took out 1.3700 as it dropped to 1.3675. As highlighted, the next support below 1.3700 is at 1.3660 followed by 1.3600. The negative phase is deemed intact as long as GBP does not move above 1.3810 (‘strong resistance’ level was at 1.3850 yesterday).”