In opinion of FX Strategists at UOB Group, Cable is still seen attempting a move to 1.3890 while above 1.3760.
24-hour view: “We highlighted yesterday that ‘upward pressure has eased and GBP has likely moved into a consolidation phase’ and we expected GBP to ‘trade sideways within a 1.3800/1.3870 range’. Our view for sideway-trading was not wrong even though GBP traded within a narrower range than expected (1.3797/1.3841). The quiet price actions offer no fresh clues and further sideway-trading would not be surprising. Expected range for today, 1.3800/1.3860.”
Next 1-3 weeks: “There is no change in our view from yesterday (13 Sep, spot at 1.3835). As highlighted, as long as 1.3760 is not breached, GBP could stage another attempt to move to 1.3890. That said, GBP has to head higher within these couple of days or the chance for an advance to 1.3890 would diminish quickly. Looking ahead, GBP has to close above 1.3910 before a sustained advance can be expected. At this stage, the prospect for GBP to close above 1.3910 is not high.”