In view of FX Strategists at UOB Group, Cable’s upside momentum has run out of steam as of late.
24-hour view: “GBP traded sideways within a 1.3225/1.3301 range yesterday, narrower than our expected 1.3200/1.3300 consolidation range. Indicators are still mostly neutral and further consolidation seems likely from here. Expected range for today; 1.3210/1.3310”.
Next 103 weeks: “GBP hit a ‘fresh’ high of 1.3363 yesterday before news of Boris Johnson’s resignation sent it tumbling to a low of 1.3189. The breach of the ‘key support’ at 1.3200 suggests that the recent upward pressure has eased. While there is no change to the neutral outlook, GBP has likely moved into a consolidation phase and is expected to trade sideways for the next several days, likely within a broad 1.3150/1.3350 range. Looking further ahead, the bias appears to be tilted to the upside but the levels just below 1.3400 are acting as a major resistance zone now and it may take a while before GBP is ready to challenge this zone”.
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