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Cable could see its upside accelerated on a break above the 1.3810 level in the next weeks, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “Yesterday, we noted that GBP ‘could edge upwards but the major resistance at 1.3810 is unlikely to come under threat’. Instead of edging upward, GBP popped to 1.3809, dropped quickly to 1.3751 before rebounding to trade sideways for the rest of the session. Upward momentum has not improved and for today, GBP is likely to trade between 1.3740 and 1.3810.”

Next 1-3 weeks: “On Monday (12 Apr, spot at 1.3705), we held the view that GBP is ‘likely to trade between 1.3670 and 1.3810’. GBP rose to 1.3809 yesterday (14 Apr) before easing off. While shorter-term momentum has not improved by much, a break of 1.3810 is not ruled out. That said, GBP has to close above 1.3810 before a sustained advance can be expected (next resistance is at 1.3850). At this stage, the prospect for such a move is not high but it would remain intact as long as GBP does not move below 1.3715 within these few days.”