Selling pressure looks alleviated in GBP/USD – UOB
In the opinion of FX Strategists at UOB Group, Cable’s downside looks mitigated and it should trade within a sideline theme instead in the next weeks.
24-hour view: “Expectation for GBP to “test 1.2900” did not materialize as it traded in a relatively quiet manner between 1.2816 and 1.2873. Momentum indicators are mostly ‘neutral’ now and GBP is likely to continue to trade sideways, expected to be between 1.2820 and 1.2880”.
Next 1-3 weeks: “GBP traded in a relatively quiet manner as it traded within a 1.2816/1.2873 range. The price action is in line with our view from yesterday (12 Nov, spot at 1.2855) wherein GBP “is deemed to have moved back into a sideway-trading phase”. In other words, we continue to expect GBP to trade sideways between 1.2770 and 1.2930 for a period”.