TD Research discusses GBP outlook and warns of sharp swings in market's mood over the coming days.
"For now, we think that 1.2860/65 should provide solid support in cable. The next major reassessment point to the upside does not come in until last week’s high at 1.3083, suggesting we have plenty of room to extend higher — as long as sentiment remains firm," TD notes.
"We note, however, that with the final days running down to a whole host of top-tier risk events and still a lot at stake, we are in a particularly mercurial and capricious time right now. This suggests the potential for sharp reversals and abrupt swings in the market’s mood are higher than usual," TD adds.