There is still scope for Cable to recede to the 1.3850 area in the next weeks, according to UOB Group’s FX Strategists.
24-hour view: “We expected GBP to ‘consolidate and trade within a 1.3920/1.4030 range’ yesterday. GBP traded between 1.3905 and 1.3999 before closing little changed at 1.3926 (+0.02%). Downward momentum has improved a tad and GBP could edge below last week’s low at 1.3890. In view of the lackluster momentum, any further decline is unlikely to threaten the major support at 1.3850. Resistance is at 1.3960 followed by 1.3990.”
Next 1-3 weeks: “There is not much to add to our update from last yesterday (01 Mar, spot at 1.3975). As highlighted, the current movement is viewed as the early stages of a corrective pullback. Any pullback is likely limited to a test of 1.3850 for now. On the upside, a break of 1.4050 (‘strong resistance’ level previously at 1.4110) would indicate the downside risk has dissipated.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.