In opinion of FX Strategists at UOB Group, Cable is still forecast to trade within the 1.3750-1.3950 range in the next weeks.
24-hour view: “We expected GBP to ‘trade sideways within a 1.3850/1.3920 range’ yesterday. GBP subsequently traded between 1.3860 and 1.3924 before closing largely unchanged at 1.3910. The outlook is mixed and GBP could continue to trade sideways for today, expected to be within a 1.3860/1.3920 range.”
Next 1-3 weeks: “There is not much to add to our update from last Friday (23 Apr, spot at 1.3845). As highlighted, the recent GBP strength has come to an end and the current movement is viewed as part of a consolidation phase. In other words, GBP is expected to trade sideways, likely between 1.3750 and 1.3950. Looking ahead, a break of 1.3950 would not be surprising but GBP has to close above 1.3980 before a sustained advance can be expected.”
