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Cable is still seen navigating within the 1.3460-1.3710 range in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our expectation for GBP to move lower was incorrect as it rebounded to an overnight high of 1.3641. The rebound appears to have room to extend higher but lackluster momentum suggests that the resistance at 1.3710 is unlikely to come under threat (1.3660 is already quite a strong level). Support is at 1.3590 followed by 1.3560.”

Next 1-3 weeks: “GBP edged above 1.3700 yesterday (high of 1.3703) before staging a surprisingly sharp sell-off. The breach of the ’strong support’ at 1.3560 (overnight low of 1.3544) has invalidated our view for GBP to advance towards 1.3750. Upward pressure has eased and the current movement is viewed as part of consolidation phase and GBP could trade between 1.3460 and 1.3710 for a period of time.”