Cable is expected to remain in a consolidative attitude for the time being, according to UOB Group FX Strategists, likely between 1.3820 and 1.4020.
View for the next 24 hours: “While we said last Friday that the “risk is still on the downside,” we also said that “any weakness is unlikely to break the support at 1.3860.” GBP fell to a low of 1.3870, confirming our prediction. The downward trend has increased slightly, and GBP could fall below 1.3860 today, but the major support at 1.3820 is unlikely to be threatened (there is another support at 1.3840). 1.3915 is the first level of resistance, followed by 1.3940.”
Within the next 1-3 weeks: “Last Thursday’s narrative (24 June, spot at 1.3965) is still valid. As previously stated, we see the latest movement as part of a consolidation, and we believe GBP will continue to trade in the 1.3820/1.4020 region for some time.”
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