Ella 
24-hour view: We expect GBP to trade sideways in the 1.2795/1.2865 range yesterday. We were wrong and GBP fell to a low of 1.2742 before recovering quickly. Downside pressure has eased with the quick rebound and the 1.2742 low may be the bottom for now. Still, it is too early to expect a major reversal. Today, GBP could be stuck in a range, possibly between 1.2755-1.2850.
Next 1-3 weeks: Our last update was last Friday (July 28th, current price 1.2800). We noted in our update: “While momentum has picked up again, it remains to be seen whether GBP can break through the major support level at 1.2720. While momentum has not picked up significantly, GBP still has a chance to fall to 1.2720. All in all, as long as GBP holds at 1.2880 (The previous “strong resistance” at 1.2900), we expect GBP to trade to the downside.
