Cable’s stance remains neutral for the time being, expected to gravitate between 1.3320 and 1.3510, suggested FX Strategists at UOB Group.
24-hour view: “We expected GBP to stage “another down-leg towards 1.3350” yesterday. The overnight low has been 1.3358 and with no sign of stabilization just yet, the immediate risk is still tilted to the downside. From here, we see room for a full test of 1.3350 but the next support at 1.3320 is unlikely to be threatened. Stabilization is only upon a move back above 1.3450 (minor resistance is at 1.3420)”.
Next 1-3 weeks: “We just shifted to a neutral stance yesterday and there is no change to the view. The current movement is deemed as the early stages of a consolidation phase and GBP is expected to trade sideways for now. That said, the immediate bias is for a probe lower towards the bottom of the expected 1.3320/1.3510 consolidation range”.
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