FX Strategists at UOB Group noted Cable is expected to remain side-lined between 1.3560 and 1.3725 in the next weeks.

Key Quotes

24-hour view: “GBP traded in a relatively quiet manner yesterday before settling at 1.3613 (+0.11%). Momentum indicators are mostly neutral and GBP is likely to trade sideways for today, expected to be between 1.3585 and 1.3660.”

Next 1-3 weeks: “On Tuesday (18 Jan, spot at 1.3645), we highlighted that the recent GBP strength has run its course and we expected GBP to trade between 1.3560 and 1.3725. GBP subsequently dropped to 1.3573 before rebounding. While the underlying tone has softened, we continue to expect GBP to trade between 1.3560 and 1.3725. Looking ahead, only a clear break 1.3540 would indicate that GBP is ready to head lower in a sustained manner.”