Ella 
178
Yesterday we pointed out that “the pound has no clear directional tendency and is expected to consolidate in the range of 1.2700/1.2775.” Then the pound traded in a narrower range (1.2711/1.2767). The upward momentum has strengthened slightly, and the pound has room to rise above 1.2790. However, any gains are unlikely to threaten the key resistance at 1.2830. Support is at 1.2730, then at 1.2710.
Outlook for the next 1-3 weeks: Our view has not changed since yesterday (21 Aug 1.2740 market). As we have highlighted, GBP’s behavior over the past week appears to be part of a consolidation phase. GBP may continue to consolidate for the time being and may trade between 1.2640-1.2830.
