In opinion of FX Strategists at UOB Group, Cable might edge larger and re-visit 1.3800 forward of 1.3850 within the short-term horizon.
24-hour view: “Yesterday, we highlighted that ‘the speedy advance seems to be operating forward of itself and GBP is unlikely to strengthen a lot additional’ and we anticipated GBP to ‘commerce between 1.3710 and 1.3780’. Our view was not unsuitable though GBP traded inside a narrower vary than anticipated (1.3710/1.3765). The underlying tone has improved considerably however whereas GBP might edge larger, it’s unlikely to interrupt the resistance at 1.3770. Help is at 1.3710 adopted by 1.3690.”
Subsequent 1-3 weeks: “There’s not a lot so as to add to our replace from yesterday (18 Oct, spot at 1.3765). As highlighted, GBP is prone to advance additional to 1.3800. Additional extension to 1.3850 just isn’t dominated out however the odds usually are not excessive for now. Solely a break of the ‘sturdy assist’ at 1.3655 (no change in stage from yesterday) would point out that GBP just isn’t prepared to move larger to 1.3800.”