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Cable’s outlook remains neutral and it is expected to navigate within the 1.3010/1.3220 range in the near term, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday that “there is room for GBP to edge above the 1.3150 resistance but the next resistance at 1.3180 is unlikely to be challenged”. In line with expectation, GBP rose to a high 1.3173 but the subsequent rapid drop that hit an overnight low of 1.3089 was not exactly anticipated. From here, the weakened undertone suggests that a dip below the 1.3089 low would not be surprising but 1.3060 is another strong support and a clear break of this level seems unlikely. On the upside, only a move back above 1.3150 would indicate that the current mild downward pressure has eased. Higher up, 1.3180 is still acting as a strong resistance”.

Next 1-3 weeks: “GBP traded sideways yesterday and closed largely unchanged (NY close of 1.3126, -0.05%). Indicators remain ‘flat’ and we continue to hold a neutral stance and expect GBP to trade sideways from here, likely within a 1.3010/1.3220 range”.