Cable is poised to keep the near term neutral stance, according to FX Strategists at UOB Group.
Key Quotes
24-hour view: “In line with expectation, GBP traded sideways even though the registered range of 1.3222/1.3292 is slightly lower (and narrower) than our expected 1.3230/1.3310 consolidation range. Indicators are mostly ‘neutral’ which offer no further clues and GBP is likely to continue to trade sideways for now. Expected range for today; 1.3240/1.3310″.
Next 1-3 weeks: “We highlighted last Friday (22 Jun, spot at 1.3245) that the “bearish phase appears to be close to ending” and the subsequent break of the ‘stop-loss’ at 1.3290 indicates that the outlook for GBP has shifted to neutral. Last week’s 1.3102 low is deemed as a short-term bottom and the current movement is viewed as the early stages of a consolidation phase. The immediate bias is tilted to the upside but at this stage, any up-move is viewed as part of a 1.3175/1.3360 consolidation range and not the start of a sustained directional move”.
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