24-hour view: We expected GBP to trade in a range between 1.2670 and 1.2740 yesterday. We did not anticipate the spike in volatility as GBP soared to 1.2780, plummeted to 1.2674, and then rebounded to close at 1.2740 (+0.30%). After the sharp but short-lived swings, the outlook for GBP is mixed. Today, GBP could continue to trade in a choppy manner, likely between 1.2680 and 1.2780. 

Next 1-3 weeks: Our update from Wednesday (05 Jul, spot at 1.2715) is still valid. As highlighted, for the time being, GBP is likely to consolidate and trade in a range of 1.2630/1.2800.