Cable remains neutral and is forecasted to navigate between 1.2900 and 1.3120 in the next weeks, noted FX Strategists at UOB Group.
Key Quotes
24-hour view: “Our view for GBP yesterday was that it ‘could drift lower but is unlikely to break the strong support at 1.2990’. Our expectation was not wrong as GBP dropped to 1.2993, rebounded quickly to 1.3075 before easing off. The underlying tone has weakened and GBP could dip below 1.2990 from here. That said, the next support at 1.2960 is unlikely to come into the picture. Resistance is at 1.3050 followed by 1.3075.”
Next 1-3 weeks: “We highlighted yesterday (26 Oct, spot at 1.3050) that ‘upward momentum is beginning to ease’ and added, ‘GBP has to move and stay above 1.3120 within these 1 to 2 days or the odds for further GBP strength would diminish quickly’. GBP subsequently came close to breaching our ‘strong support’ level at 1.2990 (low of 1.2993) and closed on a soft note at 1.3022 (-0.13%). Upward momentum has deteriorated further and further GBP appears unlikely. GBP is more likely to consolidate and trade between 1.2900 and 1.3120 for now.”
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