FX Strategists at UOB Group shifted their outlook on Cable to neutral from bullish in the near term.
24-hour view: “GBP slumped to a low of 1.3370 before rebounding quickly. The immediate pressure remains on the downside and another down leg towards 1.3350 seems likely. Only a move back above 1.3480 would indicate that a short-term low is in place (1.3455 is already quite a strong resistance)”.
Next 1-3 weeks: “The drop back below the 1.3390 ‘stop-loss’ yesterday (low of 1.3370) indicates that the bullish phase that started late last week has ended. The current movement is viewed as the early stages of a consolidation phase and GBP is expected to trade sideways for now, even though the immediate bias is for a probe lower towards the bottom of the expected 1.3320/1.3510 consolidation range”.
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 securities. 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 Forex 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.