In opinion of FX Strategists at UOB Group, Cable is seen keeping the rangebond theme unchanged for the next weeks.

24-hour view: “GBP staged a surprisingly rapid and robust rebound as it regained most of last Friday’s steep drop. While upward momentum has not improved by all that much, there is scope for GBP to test 1.2930. For today, the next resistance at 1.2960 is unlikely to come into the picture. Support is at 1.2870 followed by 1.2850”.

Next 1-3 weeks: “While GBP dropped sharply last Friday (22 Nov), it rebounded strongly and recovered most of its loss yesterday (1.2898, +0.49%). Indicators are showing mixed signals and from a slightly longer-term perspective, the price action since last month’s 1.3012 peak could be part of a broad and prolonged sideway consolidation phase (note that we previously expected GBP to stay underpinned but held the view that a move above 1.3012 is unlikely). To put it another way, GBP could trade between 1.3012 and the month-to-date low near 1.2770 for a while more”.