In opinion of FX Strategists at UOB Group, Cable could still advance further and revisits the 1.3645 level in the short-term horizon.

Key Quotes

24-hour view: “GBP pulled back to a low of 1.3505 last Friday before closing on a soft note at 1.3525 (-0.54%). While downward momentum has not improved by much, the pullback in GBP could dip below 1.3500 first before stabilization is likely. The next support at 1.3470 is unlikely to come under threat. On the upside, a break of 1.3590 (minor resistance is at 1.3560) would indicate that the current weakness has stabilized.”

Next 1-3 weeks: “Last Friday, GBP snapped its 5-day winning streak as it pulled back and close on a soft note at 1.3525 (-0.54%). While upward momentum is beginning to wane, there is chance, albeit not a high one for GBP to make one more push higher to 1.3645. However, a breach of 1.3470 (‘strong support’ level) would indicate that the risk of another leg higher has dissipated.”