In opinion of FX Strategists at UOB Group, Cable is still seen navigating the 1.3560-1.3725 range for the time being.

Key Quotes

24-hour view: “GBP traded between 1.3588 and 1.3662 yesterday, close to our expected sideway-trading range of 1.3585/1.3660. The underlying tone has weakened somewhat and the bias is tilted to the downside. However, any weakness is unlikely to break the major support at 1.3560 (next support is at 1.3520). Resistance is at 1.3620 followed by 1.3650.”

Next 1-3 weeks: “We continue to hold the same view as yesterday (20 Jan, spot at 1.3615). As highlighted, while the underlying tone has softened, we continue to expect GBP to trade between 1.3560 and 1.3725. Looking ahead, a clear break 1.3540 would indicate that GBP is ready to head lower in a sustained manner.”