Cable’s slump could accelerate if 1.3735 is cleared in the short future, according to UOB Group FX Strategists.
Observation for 24 hours: “”The quick loss appears to be overdone,” we said yesterday, “but with no signs of stabilization yet, GBP could reach 1.3760 first before a recovery can be expected.” GBP dropped to 1.3758 before swiftly rebounding, confirming our prediction. The downside danger has mostly evaporated as downward pressure has abated. GBP is predicted to trend sideways today in a range of 1.3760/1.3850.”
Within the next 1-3 weeks: “There isn’t anything to add to yesterday’s update (07 Jul, spot 1.3800). As previously said, bearish momentum is building, but before a protracted loss can be predicted, GBP must close below 1.3735. For the time being, the likelihood of GBP closing below 1.3735 is minimal, but it will remain so unless GBP moves over the’strong resistance’ level around 1.3880 in the next days.”/n
