Cable remains poised to challenge and surpass the 1.3850 level in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our expectations for GBP to ‘move above 1.3850’ did not materialize as it traded in a relatively quiet manner between 1.3776 and 1.3834. Flattish momentum indicators suggest that GBP is likely to trade sideways for today, expected to be within a range of 1.3760/1.3830.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (21 Oct, spot at 1.3825). As highlighted, while GBP is likely to break 1.3850, upward momentum is not that strong and 1.3915 may not come into the picture so soon. Overall, the GBP strength that started last Thursday (14 Oct, spot at 1.3665) is deemed intact as long as GBP does not move below 1.3720 (no change in ‘strong support’ level from yesterday).”