FX Strategists at UOB Group have shifted their outlook on Cable to neutral from bearish in the near term.
“Against our expectation, GBP took out the major 1.2300 resistance to hit a high of 1.2317 but the up-move was short lived. The rapid and sharp decline from the high appears to have scope to extend lower but at this stage, a sustained move below 1.2100 is not expected (the next support is near Wednesday’s low of 1.2035/40)”.
“GBP spiked above 1.2290 to touch a high of 1.2317 before dropping sharply to current level. The recent bearish phase has ended and the outlook for this pair is viewed as neutral for now. Further volatile trading is expected in the coming days, likely within a broad 1.2000/1.2300 range”.