Cable should attempt to move to 1.3320 as long as it trades above 1.3280, FX strategists from UOB Group suggested.
24 hour view: “We stressed yesterday that ‘unless there is a move above 1.3300 the GBP should drop to 1.3215’. We added, “The next support is at 1.3190”. The British pound then traded choppily as it fell to a low of 1.3198 before rebounding strongly to an overnight high at 1.3279. Price actions have resulted in a mixed outlook and the GBP could trade between 1.3200 and 1.3300 for now. “
Next 1-3 weeks: “There isn’t much to add to our update yesterday (November 19, up to 1.3265). As pointed out, the GBP “must move and stay above 1.3380 during those 1-2 days or a breakout of 1.3160 (no change from the ‘strong support’ level) would indicate that the GBP is not is not ready to go above 1.3322 ”. The GBP then fell to 1.3198 before rebounding strongly to end the day at 1.3265 (-0.02%). The upside momentum continues to wane and unless the GBP can maintain a foot above 1.3280 during those 1-2 days, the prospect of a move above 1.3322 would diminish quickly. “