Cable is expected to prolong the broader sidelined theme for the next weeks, according to FX Strategists at UOB Group.
Key Quotes
24-hour view: “GBP traded at a higher and wider range of 1.2910/1.3029 last Friday (our expected consolidation range was 1.2870/1.2950). The daily closing in NY is on the weak side (close of 1.2915) which suggests increasing downward pressure. From here, there is scope for GBP to test the 1.2880 support but the next support at 1.2850 is likely out of reach. On the upside, only a break of 1.2970 would indicate that the current downward pressure has eased. The 1.3029 high is not expected to come into the picture any time soon”.
Next 1-3 weeks: “GBP rose to a high of 1.3029 last Friday, relatively close to the top our expected 1.2800/1.3050 consolidation range before falling sharply back to a low of 1.2910. As highlighted in recent updates, the immediate outlook for GBP is unclear after the recent volatile price actions and we continue to hold a neutral stance and expect GBP to trade sideways, likely within a broad 1.2800/1.3050 range”.
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