For the time being, cable is fixated on the 1.3790 level, according to UOB Group FX Strategists.
Observation for 24 hours: “”While the risk remains on the downside, negative momentum has not increased significantly, and a breach of the important support at 1.3790 is doubtful,” we said yesterday. GBP sank to 1.3799 before rebounding, confirming our prediction. Despite the rally, we believe the GBP has a potential to go below 1.3790. Major support at 1.3750, on the other hand, is unlikely to appear. 1.3870 is the next level of resistance after 1.3850.”
Within the next 1-3 weeks: “Yesterday’s update (30 June, spot at 1.3840) is still valid. As previously stated, downward momentum is improving, but only a NY close below 1.3790 would signal the start of a new weak phase in the GBP. The likelihood of such a move has grown, and only a break of 1.3905 (no change in the’strong resistance’ level) would suggest that the risk of a persistent decrease in the GBP has faded. The next key support levels below 1.3790 are at 1.3750 and 1.3715, respectively.”/n
