FX Strategists at UOB Group remain neutral on Cable and they expect it to navigate within the 1.3100/1.3330 range in the next 1-3 weeks.
24-hour view: “GBP reversed an initial drop to a low of 1.3122 and surged to hit a high of 1.3292. The strong rally appears to be running ahead of itself even though a test of the strong 1.3300 resistance would not be surprising. At this stage, a sustained move above this level seems unlikely (next resistance is at 1.3330). Support is at 1.3210 followed by 1.3170. The 1.3122 low is not expected to come into the picture for now”.
Next 1-3 weeks: “GBP traded in a choppy manner yesterday and registered a wide range of 170 pips (between 1.3122 and 1.3292). The whippy price action reinforces our current neutral view for GBP and we continue to expect this pair to trade sideways within a broad 1.3100/1.3330 range”.
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