24-hour view: Yesterday, we expected GBP to edge higher. We highlighted that “1.2805 is still a solid resistance, and the next major resistance at 1.2850 is unlikely to come under threat.” The price movements did not develop as we anticipated. Instead of edging higher, GBP spiked to 1.2845 and then fell back quickly. The choppy price actions have resulted in a mixed outlook, and there is no clear directional bias. Today, GBP could trade in a range between 1.2680 and 1.2790.

Next 1-3 weeks: Our update from yesterday (22 Jun, spot at 1.2770) is still valid. As highlighted, the recent GBP strength has ended and GBP is likely to trade between 1.2650 and 1.2850 for now.