FX Strategists at UOB Group have shifted their focus to neutral on Cable, adding that its stance remains constructive for the time being.
24-hour view: â€œIn line with expectation, GBP traded sideways yesterday and settled largely unchanged by the end of the day. However, the registered 1.3368/1.3472 range was much wider than anticipated. The consolidation phase appears incomplete and further sideway trading seems likely. Expected range for today; 1.3360/1.3450â€.
Next 1-3 weeks: â€œWhen we turned neutral on Monday (04 Jun, spot at 1.3355), we held the view that GBP has moved into a correction phase. We added the positive shorter-term momentum could â€œlead to a move higher to 1.3465â€. GBP hit a high of 1.3472 yesterday before easing off quickly. Despite the pullback, the underlying tone is still positive and another push higher towards the next resistance at 1.3520 is not ruled out (even though the odds are not high). Only a move back below the â€˜key supportâ€™ at 1.3350 (level unchanged) would indicate that the current mild upward pressure has easedâ€.