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FX Strategists at UOB Group now see Cable testing the 1.3170 in the next weeks.

Key Quotes

24-hour view: “We expected a higher GBP yesterday but the break of the strong 1.3105 resistance came as a surprise (overnight high of 1.3124). While the rally has moved into overbought territory, there is no sign of weakness just yet and GBP could stills strengthen from here. The next resistance is at 1.3170 but this level could be just out of reach for now (minor resistance is at 1.3145). On the downside, we expect 1.3045 to be strong enough to hold any intraday pull-back (minor support is at 1.3075)”.

Next 1-3 weeks: “We have held the same view since Tuesday (11 Sep, spot at 1.3025) wherein the current rebound in GBP could extend to 1.3170. The price action over the past couple days bodes well for our view and 1.3170 appears to be within reach sometime next week. At this stage, we still do not expect a sustained move above this level but the odds for further upward extension have increased. On the downside, the ‘key support’ is raised to 1.3000 from 1.2900 previously”.

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