FX Strategists at UOB Group suggested Cable could breach below the 1.3300 level and attempt a test of 1.3260 in the near term.

Key Quotes

24-hour view: “Yesterday, we highlighted that ‘downward pressure has eased and this coupled with oversold conditions suggest that the current movement is part of a consolidation phase’ and we expected GBP to ‘trade within a range of 1.3300/1.3365’. GBP subsequently traded between 1.3288 and 1.3357 before closing little changed at 1.3318 (-0.09%). We continue to view the current movement as part of a consolidation and expect GBP to trade between 1.3285 and 1.3360 for today.”

Next 1-3 weeks: “Our update from yesterday (29 Nov, spot at 1.3330) still stands. As highlighted, there is room for GBP to drop to 1.3260. At this stage, a sustained decline below this level is unlikely. On the upside, a break of 1.3390 (no change in ‘strong resistance’ level) would indicate that the weakness in GBP that started early last week has run its course.”