GBP/USD remains within the 1.3690-1.3840 range – UOB

Cable is still seen navigating within the 1.3690-1.3840 range in the short-term horizon, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “The sharp but short-lived surge in GBP to 1.3829 and the subsequent rapid pullback came as a surprise (we were expecting GBP to drift lower). While the pullback lacks momentum, we still see chance for GBP to edge lower. That said, any weakness is unlikely to break 1.3725 (there is another support at 1.3740). Resistance is at 1.3785 followed by 1.3810.”

Next 1-3 weeks: “There is no change in our view from Monday (25 Oct, spot at 1.3755). As highlighted, the recent GBP strength has come to an end. The current movement is viewed as part of a consolidation phase and GBP is likely to trade between 1.3690 and 1.3840.”