Ella 
Yesterday, when GBP was trading at 1.2635, we emphasized that “further gains are possible as long as GBP does not fall below 1.2580.” However, we believe that “GBP does not appear to have enough momentum to break the important resistance level of 1.2685.” Although GBP strengthened as expected , and its rise far exceeded our expectations. The pound soared to 1.2746 before closing up 0.59% at 1.2719, recording its largest single-day gain in more than a month. Further gains in GBP are not ruled out, but there does not seem to be enough momentum to hit 1.2800 today (minor resistance is at 1.2760). On the downside, if the pound falls below 1.2655 (with slight support at 1.2685), it will indicate that it will not rise further.
The next 1-3 weeks: Yesterday (August 30, the market price was 1.2635) we emphasized that “the probability of a further decline in the pound is decreasing. If it breaks through 1.2685, it will indicate that the pound may fall into range trading, rather than fall further.” In the North American session, the pound not only rose After breaking 1.2685, the price also surged and closed sharply up 0.59% at 1.2719. The sharp build-up in momentum suggests that, contrary to range-bound trading, there is a chance of GBP rising to 1.2800, with the chances of hitting 1.2835 declining. To maintain current momentum, GBP must not fall below 1.2630 (‘strong support’ level).
