In opinion of FX Strategists at UOB Group, Cable is now likely to move within the 1.3860-1.4070 range in the next week.
24-hour view: “We highlighted yesterday that ‘the rebound in GBP has scope to extend but any further advance is likely limited to a test of 1.3995’. We added, ‘the next resistance at 1.4035 is unlikely to come into the picture’. GBP subsequently rose to 1.4006 before easing off. Downward momentum has improved a tad and GBP could edge lower to 1.3890. In view of the lackluster momentum, the odds for an extension to 1.3860 are not high. Resistance is at 1.3970 followed by 1.4000.”
Next 1-3 weeks: “On Monday (01 Mar, spot at 1.3975), we held the view that GBP ‘is in a corrective pullback’ and ‘any weakness is likely limited to 1.3850’. While GBP declined as expected, it rebounded strongly after touching 1.3860 yesterday. Downward momentum has more or less dissipated and GBP could trade between 1.3860 and 1.4070 for now.”
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.