FX Strategists at UOB Group noted Cable’s stance remains mixed for the time being.
Key Quotes
24-hour view: “The strong resistance indicated at 1.3250 yesterday was unthreatened as GBP dropped sharply from a high 1.3213. The surprisingly sharp and rapid decline appears to have scope to dip below the 1.3070 low seen earlier this week but at this stage, a break of the next support at 1.3035 is not expected. Only a move back above 1.3165 would indicate that a short-term low is in place (minor resistance is at 1.3145)”.
Next 1-3 weeks: “The top of our expected 1.3050/1.3250 consolidation range was untested as GBP dropped quickly from a high of 1.3213. As highlighted in recent updates, the choppy price action in GBP over the past several days has resulted in a mixed outlook and the near-term direction is unclear. For now, we continue to hold a neutral stance and expect GBP to trade in a whippy manner, likely within a 1.3010/1.3220 range (slightly lower than the previous expectation of 1.3050/1.3250 range)”.
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