According to FX Strategists at UOB Group, Cable is now seen navigating within the 1.3460-1.3680 range in the next weeks.
Key Quotes
24-hour view: “Our view that GBP ‘is unlikely to advance much further’ yesterday was incorrect as it rose to 1.3640 before settling on a firm note at 1.3607 (+0.48%). Despite the advance, upward momentum has not improved by all that much. From here, there is room for GBP to retest the 1.3640 level first before the risk of a pullback would increase. The major resistance at 1.3680 is not expected to come into the picture. On the downside, a break of 1.3560 (minor support is at 1.3585) would indicate that the current mild upward pressure has eased.”
Next 1-3 weeks: “There is no change in our view from yesterday (04 Oct, spot at 1.3570). As highlighted, the recent weakness in GBP has ended. The current movement is viewed as part of a consolidation phase and GBP could trade within a 1.3460/1.3680 range for now.”
