Cable could see its upside renewed on a breakout of the 1.3710 level in the next weeks, suggested FX Strategists at UOB Group.
24-hour view: “While we expected GBP to strengthen yesterday, we were of the view that ‘1.3700 is unlikely to come into the picture’. However, GBP popped to a high of 1.3720, dropped quickly to 1.3623 before snapping back up. The price actions have resulted in a mixed outlook and for today, GBP is likely to trade between 1.3620 and 1.3720.”
Next 1-3 weeks: “There is not much to add to our update from yesterday (20 Jan, spot at 1.3645). As highlighted, GBP ‘has to close above 1.3710 before a sustained advance can be expected’. GBP subsequent rose to 1.3720 before retreating to close at 1.3660 (+0.18%). While momentum is positive, it appears ‘tentative’ for now and we continue to wait for added confirmation of a daily closing above 1.3710 before expecting a move to 1.3760, possibly 1.3800. On the downside, a break of 1.3580 (‘strong support’ level was at 1.3550 yesterday) would indicate that the upside 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.