In opinion of FX Strategists at UOB Group, the upside pressure in Cable is expected to mitigate on a breach of the 1.2200 mark.
24-hour view: “GBP traded sideways between 1.2349 and 1.2476, a much narrower range than our expected range of 1.2300/1.2490. The price action offers no fresh clues and GBP could continue to trade sideways between the two strong levels of 1.2300 and 1.2490 for now.”
Next 1-3 weeks: “After rising quickly to 1.2484 last Friday (27 Mar), GBP has not been able to make much headway on the upside as it traded in a relatively quiet manner over the last few days. For now, we are holding on to our view that the ‘current recovery has scope to extend higher but prospect for a move above 1.2550 is not high’. To look at it another way, there is chance for GBP to test 1.2550 first before a pull-back can be expected. On the downside, a breach of 1.2200 (‘strong support’ previously at 1.2100) would indicate the current upward pressure has dissipated.”
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.