Cable’s outlook stays neutral for the time being and is seen extending the consolidative theme for the time being, suggested FX Strategists at UOB Group.
24-hour view: “GBP traded between 1.3200 and 1.3285 yesterday, slightly narrower and lower than our expected 1.3210/1.3310 consolidation range. The subsequent weak daily closing in NY (close of 1.3204) suggests downside risk has increased even though a clear break below 1.3150 would come as a surprise (1.3175 is already quite a strong support). On the upside, only a move back above 1.3250 would indicate that the current mild downward pressure has eased”.
Next 1-3 weeks: “There is not much to add as GBP traded in a relatively quiet manner over the past couple of days. We continue to hold the view that GBP has moved into a consolidation phase and is expected to trade sideways, likely within a broad 1.3150/1.3350 range”.
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