FX Strategists at UOB Group noted Cable’s upside is predicted to gather further steam above the 1.4235 level.
Key Quotes
24-hour view: “Our expectation for GBP to ‘test 1.4235’ did not materialize as it traded between 1.4137 and 1.4205 before settling slightly lower at 1.4185. Momentum indicators are mostly flat and GBP is expected to consolidate for today, likely within a 1.4150/1.4220 range.”
Next 1-3 weeks: “Our update from last Friday (28 May, spot at 1.4200) still stands. As highlighted, GBP ‘has to close above 1.4235 before a sustained advance can be expected’. On the downside, a breach of 1.4110 (no change in ‘strong support’ level) would indicate that the upside risk has dissipated. Looking ahead, the next resistance levels above 1.4235 are at 1.4265 and 1.4290.”
