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In opinion of FX Strategists at UOB Group, Cable remains under pressure and could attempt a test of 1.3760, suggested UOB Group’s FX Strategists.

Key Quotes

24-hour view: “Our expectation for the ‘rebound in GBP to extend’ was incorrect as it dropped to 1.3801 instead. Despite the decline, downward momentum has not improved by much. That said, there is room for GBP to edge lower to 1.3760 (minor support is at 1.3780). For today, a sustained decline below this level is unlikely. Resistance is at 1.3845 followed by 1.3870.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (09 Mar, spot at 1.3850). As highlighted, GBP ‘is under mild downward pressure and could edge lower to 1.3760’. While momentum still appears to be lackluster, a break of 1.3760 is not ruled out but the next support at 1.3700 is unlikely to come into the picture so soon. On the upside, a break of 1.3930 (‘strong resistance’ level was at 1.3965 yesterday) would indicate the current mild downward pressure has eased.”