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Cable is still expected to tackle the 1.3200 mark and beyond in the next weeks, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “Although GBP did not ‘take on’ 1.3170 as thought yesterday, it is still largely supported above 1.3100. The strong rally in the last couple of days has probably transited into consolidation. Expected range is between 1.3050 and 1.3190. Only with a move below 1.3010 would indicate that the up-move is over.”

Next 1-3 weeks: “Our last rhetoric was that “downward pressure has eased but there is still a slim chance that GBP could dip below 1.2955”. GBP continued to recover strongly and touched a high of 1.3153 overnight. An improving upside momentum, if sustained, could bring GBP higher towards 1.3220. On the downside, support is at 1.3000 and only a further move to 1.2960 would indicate that GBP has moved back into a sideway trading phase.”