FX Strategists at UOB Group noted Cable remains well within the consolidative theme, likely between 1.2350 and 1.2600.
“The anticipated GBP weakness exceeded our expectation by breaking below the strong 1.2400 support to touch a low of 1.2384. The strong bounce from the low suggests that a short-term bottom is in place. From here, allow for a dip to 1.2430 but 1.2380 is expected to hold for a move higher to 1.2530”.
“GBP continues to trade in a choppy manner and the current neutral phase is still clearly intact. Indicators are mostly ‘flat’ which suggest further range trading for now, likely between 1.2350 and 1.2600”.