Ella 
Yesterday we believed that “downside risks to GBP are limited.” We expected it to trade in the 1.2170/1.2245 range. Contrary to range trading, GBP fell to a low of 1.2154. The pound does not rule out further losses today, but the weak downward momentum suggests that the pound is unlikely to hit the important support level of 1.2100. Resistance is at 1.2175; if the pound rises above 1.2195, it means that the pound’s decline has stabilized.
Next 1-3 weeks: Not much has changed in our update since yesterday (September 26th, market price 1.2215). As we have highlighted, the pound’s decline that began at the beginning of this month is still ongoing and may continue to move lower, with the next level of concern being 1.2100. As long as it remains below 1.2245 (the previous ‘strong resistance’ level was 1.2295), the pound’s decline remains.
