Search ForexCrunch

While the outlook on Cable remains tilted to the downside, the move is forecasted to be within a broad side-lined theme, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our view for GBP to ‘dip towards 1.2150’ was incorrect as it rebounded sharply from a low of 1.2166 (overnight high of 1.2383). Despite the relatively strong bounce, upward momentum has not improved by much. However, GBP could edge above the overnight high but any advance is viewed as part of a 1.2250/1.2420 range (a sustained rise above 1.2420 is not expected).”

Next 1-3 week: “There is not much to add to the update from Monday (06 Apr, spot at 1.2230). As highlighted, the ‘the immediate risk from here is tilted to the downside but any weakness is viewed as part of a broad 1.1950/1.2420 range’. GBP dropped to 1.2166 yesterday (07 Apr) before rebounding quickly. After the strong bounce, GBP could test the top of the expected at 1.2420 but for now, the prospect for a sustained rise above 1.2420 is not high.”