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FX Strategists at UOB Group suggested Cable could extend the current consolidative theme.

Key Quotes

24-hour view: “We highlighted yesterday, “the immediate risk is on the upside but a sustained break above 1.3220 would come as a surprise”. GBP staged a brief up-move after FOMC’s announcement but reversed quickly after touching a high of 1.3218. While upward pressure has eased, it is too early to expect a significant pullback. GBP is more likely to trade sideways to slightly lower from here. Expected range for today; 1.3130/1.3210″.

Next 1-3 weeks: “GBP touched a high of 1.3218 yesterday, just a couple of pips below the top of our expected 1.3020/1.3220 consolidation range. As highlighted yesterday, despite the rather sharp rebound from last Friday’s 1.3041 low, we continue to view the current price action as part of a consolidation phase. Looking further ahead, a clear break above 1.3220 would be a good indication that GBP is ready to challenge last week’s 1.3295 top”.