FXStreet reports that in opinion of FX Strategists at UOB Group, cable is now expected to extend the correction lower to the 1.2730 region in the next weeks.

Next 1-3 weeks: “We have held the same view since last Thursday (17 Sep, spot at 1.2950) wherein ‘1.2763 is likely an interim bottom’ and GBP ‘could consolidate between 1.2800 and 1.3100 for a period of time before attempting to move below 1.2763’. After the strong decline yesterday (11 Sep), a break of 1.2763 would not be surprising but at this stage, is appears too soon to expect a move towards the next major support at 1.2660. All in, we expect GBP to trade with a downward bias towards 1.2730 but GBP has to close below this level before further weakness can be expected. On the upside, a break of 1.2930 (‘strong resistance’ level) would indicate that GBP needs more time before moving lower in a more sustained manner.”