Cable keeps the neutral bias and it is expected to remain within the 1.38/1.40 range, suggested FX Strategists at UOB Group.
24-hour view: “We expected a higher GBP yesterday but were of the view that a sustained move above 1.3890 is unlikely. The anticipated up-move was stronger than expected as GBP hit an overnight high of 1.3917. The advance appears to be running ahead of itself even though there is room for GBP to move above the next strong resistance at 1.3930 before a pull-back can be expected (next resistance is at 1.3960). Support is at 1.3875 but only a break back below 1.3840 would indicate that a short-term top is in place”.
Next 1-3 weeks: “GBP edged above the top of our expected 1.3700/1.3900 consolidation range yesterday (high of 1.3917). The recent mild downward pressure has eased but there is no change to the current neutral outlook. That said, the improved undertone suggests that GBP could edge higher in the next few days but at this stage, any advance is viewed as part of a higher 1.3800/1.4000 consolidation range and not the start of a sustained rally”.
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