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Cable is still seen within the 1.3640-1.3710 band in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Yesterday, we held the view that GBP ‘could trade in a choppy manner between 1.3550 and 1.3680’. While the subsequent price actions were relatively choppy, GBP traded within a lower and narrower range of 1.3533/1.3631. The underlying tone has weakened and GBP is likely to edge lower to 1.3520. The next support at 1.3490 is unlikely to come into the picture. Resistance is at 1.3600 and a break of 1.3630 would indicate the current mild downward pressure has eased.”

Next 1-3 weeks: “There is not much to add to our update from Tuesday (05 Jan, spot at 1.3565). As highlighted, the movement in GBP is viewed as part of a consolidation phase and GBP could trade between 1.3460 and 1.3710 for a period of time. Looking forward, while a dip towards 1.3460 is not ruled out, the consolidation phase is likely to be resolved by GBP moving above 1.3710.”