According to FX Strategists at UOB Group, Cable is forecast to remain side-lined for the time being.

Key Quotes

24-hour view: “We expected GBP to ‘trade sideways within a 1.3880/1.3980 range yesterday’. However, it dropped to 1.3854 before recovering to end the day at 1.3900 (-0.50%). Downward momentum has improved a tad and GBP could dip below 1.3850. The next support at 1.3810 is not expected to come under threat. On the upside, a break of 1.3945 would indicate that the current mild downward pressure has eased (minor resistance is at 1.3915).”

Next 1-3 weeks: “There is no change in our view from last Thursday (11 Mar, spot at 1.3930). As highlighted, GBP has moved into a consolidation phase and is expected to ‘trade between 1.3810 and 1.4020 for now’.