Cable could rise to 1.3960 in the next weeks, according to UOB Group FX Strategists.
Observation for 24 hours: “Our forecast for GBP to ‘test 1.3930′ was not realized, as it moved in a range of 1.3839/1.3912. We believe there is still opportunity for GBP to rise, although a decisive breach of 1.3930 is doubtful (minor resistance is at 1.3915). 1.3835 is the first level of support, followed by 1.3850.”
Within the next 1-3 weeks: “We haven’t changed our minds since yesterday (12 Jul, spot at 1.3895). As previously said, the big rise in the British pound last Friday has shifted the risk to the upside, and the pound might rise to 1.3960. At this point, the chances of a sustained advance above this level are slim. As long as GBP does not go below the 1.3800’strong support’ level, the upside risk remains intact.”/n
