GBP/USD sticks to the consolidative theme – UOB

Cable is still seen within the 1.3650-1.3810 rangebound theme for the time being, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our expectation for ‘further GBP strength’ last Friday was incorrect as it dropped to 1.3659 before settling on a soft note at 1.3670 (-0.36%). While downward momentum has not improved by much, the decline has room to dip below 1.3650. That said, a sustained decline below 1.3650 is unlikely (next support at 1.3610). Resistance is at 1.3695 followed by 1.3725.”

Next 1-3 weeks: “Last Friday (24 Sep, spot at 1.3730), we highlighted that GBP is in a consolidation phase and is likely to trade between 1.3650 and 1.3810 for a period of time. We did not anticipate the rapid manner by which GBP approaches 1.3650 as it dropped to 1.3659 during NY session. Despite the decline, downward momentum has not improved by much. Looking ahead, GBP has to close below 1.3610 before a sustained decline can be expected.”