Search ForexCrunch

In opinion of FX Strategists at UOB Group, Cable could slip back to the mid-1.4000s in the next weeks.

Key Quotes

24-hour view: “GBP dropped to 1.4114 yesterday before closing at 1.4121 (-0.20%). GBP extended its decline during early Asian session and a break of the strong support at 1.4100 appears likely. That said, the next major support at 1.4055 is unlikely to come under threat. Resistance is at 1.4130 followed by 1.4155.”

Next 1-3 weeks: “We have held the same view since last Friday (21 May, spot at 1.4185) wherein ‘it is too early to expect GBP to move into a new positive phase’. We highlighted that ‘GBP has to close above 1.4235 before a move to 1.4290 can be expected’. GBP subsequently traded mostly sideways before dropping to 1.4114 yesterday (26 May). Downward momentum is beginning to improve and GBP could edge lower to 1.4055. At this stage, the chance for a sustained decline below 1.4055 is not high but it would increase further unless GBP moves above the ‘strong resistance’ level at 1.4180 within these few days. Looking ahead, the next support below 1.4055 is at 1.4000.”