24-hour view: We noted last Friday that the “outlook for GBP is mixed” and we expected it to trade in a range between 1.2680 and 1.2790. GBP then traded in a relatively choppy manner, but in a narrower range than we expected (1.2685/1.2750). The price movements are likely part of a consolidation phase. Today, we expect GBP to trade in a range, likely between 1.2690 and 1.2760.

Next 1-3 weeks: Our most recent narrative was from last Thursday (22 Jun, spot at 1.2770) wherein the recent GBP strength has ended and it is likely to trade between 1.2650 and 1.2850 for now.  There is no change in our view.