Ella 
Yesterday, the pound closed slightly lower at 1.2721 (-0.22%). Momentum has picked up slightly and GBP could trade slightly lower today. With the downside pressure moderate, any decline below 1.2665 is unlikely to be noticeable and unlikely to threaten the key support at 1.2620. On the upside, a move above 1.2765 (minor resistance at 1.2740) would indicate that the current mild downward pressure has eased.
Next 1-3 weeks: We are bearish on GBP for over a week. Since two days ago (1.2780 market on 8 Aug) we noted that “downward momentum has weakened further. Chances of GBP falling to 1.2580 have declined.” Our view remains unchanged for now. Overall, only a break of 1.2805 (previously ‘strong resistance’ level at 1.2830) would indicate that GBP’s decline has stabilized.
