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Cable is forecast to still trade between 1.3460 and 1.3710 in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Yesterday, we expected the ‘rebound in GBP to extend higher’ but we were of the view that ‘1.3710 is unlikely to come under threat’. GBP subsequently rose to 1.3671, plunged to 1.3536 before snapping back up to close slightly lower at 1.3610 (-0.10%). The rapid swings have resulted in a mixed outlook and for now, GBP could trade in a choppy manner between 1.3550 and 1.3680.”

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.”