In view of the research team at UOB Group, further gains await for Cable on a break of 1.3320 in the near term.

Key Quotes

“The strong overnight rally appears incomplete and further GBP strength is expected from here. However, last week’s peak near 1.3315/20 is a very strong resistance and a sustained move above this level seems unlikely for now”.

“While shorter-term upward momentum has improved, a sustained up-move in GBP is likely only if there is a clear break above the strong 1.3320 resistance. At this stage, the odds for a break of this level are not high even though it has increased. Overall, the positive undertone would continue to improve as long as GBP stays above 1.3070”.