In opinion of FX Strategists at UOB Group, cable could still surpass the 1.3600 barrier in the short-term horizon.

Key Quotes

24-hour view: “GBP traded between 1.3509 and 1.3557 yesterday, narrower than our expected sideway-trading range of 1.3500/1.3570. The price actions offer no fresh clues and GBP could continue to trade sideways. Expected range for today, 1.3515/1.3575.”

Next 1-3 weeks: “Our view from Monday (07 Feb, spot at 1.3530) still stands. As highlighted, 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.”