According to FX Strategists at UOB Group, Cable remains neutral and it is expected to gravitate between 1.31 and 1.3330 in the short term.
24-hour view: “The anticipated ‘test’ of 1.3250 did not materialize as GBP only managed to touch a high of 1.3236. The undertone is still positive and from here, there appears to be room for GBP to grind higher towards 1.3280. This is a rather strong resistance and a clear break of this level is not expected (1.3250 is acting as a minor resistance). Support is at 1.3200 followed by 1.3175”.
Next 1-3 weeks: “We just turned neutral on GBP yesterday (11 Oct) and there is no change to the view. The current movement is viewed as the early stages of a consolidation phase and GBP is expected to trade sideways, likely within a 1.3100/1.3330 range”.
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