In opinion of FX Strategists at UOB Group, Cable remains poised to extend the decline in the near term.

Key Quotes

24-hour view: “Yesterday, we highlighted that GBP ‘could dip to 1.3240 before the risk of a rebound would increase’. Our expectations did not materialize as GBP traded in a relatively quiet manner between 1.3265 and 1.3333. Momentum indicators are turning neutral and GBP is likely to trade sideways for today, expected to be between 1.3270 and 1.3350.”

Next 1-3 weeks: “There is not much to add to our update from Wednesday (01 Dec, spot at 1.3295). We continue to hold the same view that while further GBP weakness is not ruled out, 1.3195 is a solid support and may not be easy to crack. On the upside, a break of 1.3390 (no change in ‘strong resistance’ level from yesterday) would indicate that the weakness in GBP from early last week has run its course.”