Ella 
Yesterday we expected the pound to consolidate between 1.2455/1.2520. However, GBP rebounded to highs of 1.2548. While the rally lacks momentum, GBP is likely to test 1.2555 before moving flat. GBP is unlikely to rise significantly above 1.2555. Support lies at 1.2480, followed by 1.2450.
Next 1-3 weeks: We have been expecting GBP to weaken since the beginning of last week. In our latest report last Thursday (7 September, current price 1.2500) we highlighted that GBP “is likely to continue to weaken, albeit at a slower pace”. We also add, “The next significant support level at 1.2400 may not appear so soon. The downward momentum has slowed and the probability of GBP falling to 1.2400 seems low. On the upside, if GBP breaks through 1.2555 (“strong resistance” level is not change), it means that the pound will not weaken further.
