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Cable is still seen within the 1.21/1.24 range in the next weeks, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “GBP recovered after touching a low of 1.2187 yesterday. The price action was in line with our expectation that GBP ‘has scope to dip below 1.2200 but 1.2175 is likely out of reach’. The relatively quiet trading has resulted in momentum indicators turning neutral. For today, GBP is expected to consolidate and trade between the two strong levels of 1.2175 and 1.2270.”

Next 1-3 weeks: “GBP traded in a quiet manner yesterday within a relatively narrow range of 62 pips (between 1.2187 and 1.2249). The price action offers no fresh clues and for now, we continue to hold on to the view from Wednesday (20 May, spot at 1.2260) wherein GBP is in a consolidation phase and is likely to trade within a 1.2100/1.2400 range.”