The outlook for Cable stays optimistic with the subsequent goal at 1.3850 and past in the non permanent horizon, cautioned FX Strategists at UOB Group.
24-hour view: “Yesterday, we anticipated GBP to ‘trade sideways inside a 1.3765/1.3830 range’. However, GBP dropped to 1.3743 earlier than rebounding sharply to 1.3833 at some stage in NY hours. Despite the rebound, upward momentum has now not expanded by way of all that much. However, there is room for GBP to facet above 1.3850. For today, the subsequent most important resistance at 1.3915 is now not predicted to come into the picture. Support is at 1.3790 observed by using 1.3755.”
Next 1-3 weeks: “Our narrative from the day gone by (20 Oct, spot at 1.3795) nevertheless stands. As highlighted, GBP is nevertheless robust and an increase to 1.3850 would no longer be surprising. While GBP is probably to damage 1.3850, upward momentum is no longer that robust for now and 1.3915 might also now not come into the image so soon. Overall, the GBP power that began remaining Thursday (14 Oct, spot at 1.3665) is deemed intact as lengthy as GBP does no longer cross under 1.3720 (no trade in ‘strong support’ stage from yesterday).”