Cable is expected to trade in the 1.3735-1.3900 range in the next weeks, according to UOB Group FX Strategists.
Observation for 24 hours: “GBP was projected to ‘consolidate and trade between 1.3830 and 1.3900’ yesterday. Following that, GBP soared to within a few pips of our projected range (high of 1.3898) before plummeting to 1.3805. A mixed view has resulted from the turbulent price movements. GBP could move between 1.3800 and 1.3885 today.”
Within the next 1-3 weeks: “Our position has not changed since two days ago (14 Jul, spot at 1.3805). GBP is expected to trade between 1.3735 and 1.3900 for a while, as previously said. A breach of 1.3900 is not ruled out in the near future, but GBP must close above 1.3930 before a prolonged rally can be envisaged. On the downside, 1.3735 is a strong support level, and only a break of this level would signal that the pound is about to drop to 1.3670.”/n
