GBP/USD keeps the consolidative mood unchanged – UOB
|Cable remains in a consolidative mode within the 1.3650-1.3810 range for the time being, suggested FX Strategists at UOB Group.
Key Quotes
24-hour view: “We highlighted yesterday that ‘there is room for GBP to dip below 1.3650 but a sustained decline below this level is unlikely’. GBP subsequently dipped to 1.3661 before rebounding to 1.3729 during NY session. Momentum indicators are turning ‘neutral’ and GBP is likely to consolidate for today, expected to be between 1.3665 and 1.3740.”
Next 1-3 weeks: “Our latest narrative from last Friday (24 Sep, spot at 1.3730) still stands. As highlighted, GBP is in a consolidation phase and is likely to trade between 1.3650 and 1.3810 for a period of time. While the underlying tone has weakened a tad, a sustained decline in GBP is likely only if it closes below 1.3610. At this stage, the odds for GBP to close below 1.3610 are not high.”
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