Ella 
We were wrong yesterday about GBP range trading. Contrary to the range trading, the pound fell sharply and broke through the important support of 1.2400 (as low as 1.2398). GBP is likely to continue to weaken today, even though severely oversold conditions suggest that a sustained break below 1.2355 is unlikely. It is unlikely to hit the next important support level at 1.2305 today. On the upside, a break above 1.2455 (with slight resistance at 1.2430) would indicate that the pound’s decline has stabilized.
Next 1-3 weeks: When the pound was trading at 1.2590 last Monday (September 4), we emphasized that “sterling risks appear to have turned to the downside.” We maintain our negative view on the pound, with the market price yesterday (September 14) at 1.2490 ) We pointed out that “as long as 1.2555 is not exceeded, the pound has a chance to fall to 1.2400 and then stabilize.” Although our view was correct, as the pound fell to a low of 1.2398 during the North American session, we did not expect its sharp decline and It closed sharply down 0.64% to 1.2411. There are no signs of stabilization yet. In other words, we still expect GBP to weaken. The next level focuses on the May low of 1.2305. On the upside, the ‘strong resistance’ level moved lower from 1.2555 to 1.2485.
