A pass above 1.3400 remains on the playing cards amidst the association momemtun in Cable, recommended FX Strategists at UOB Group.
24-hour view: “We highlighted the day prior to this that ‘upward momentum has improved’ and that ‘a smash of 1.3400 may want to lead to similarly positive factors toward 1.3440’. Our view did now not materialize as GBP rose to a excessive of 1.3399 earlier than taking flight quickly. Upward strain has greater or much less dissipated and the modern-day motion is considered as phase of a consolidation phase. Overall, GBP is predicted to exchange sideways, predicted to be inside a 1.3315/1.3390 range.”
Next 1-3 weeks: “We have held a superb view in GBP seeing that remaining Tuesday (17 Nov, spot at 1.3210). After GBP retreated from a excessive of 1.3396, we highlighted on Tuesday (24 Nov, spot at 1.3325) that ‘there is chance, albeit no longer a excessive one, for GBP to push above 1.3400’. GBP rose to 1.3394 the previous day earlier than closing at 1.3386 (+0.19%). Momentum is commencing to enhance and a damage of 1.3400 would shift the focal point to the yearto-date excessive at 1.3481 (there is a minor resistance at 1.3440). All in, the outlook for GBP is deemed as fantastic as long as it does no longer pass beneath 1.3280 (‘strong support’ stage earlier at 1.3250).”