24-hour view: We indicated yesterday that “there is a chance for GBP to test 1.2755 before the risk of a pullback increases.” Our view did not materialize, as GBP traded in a relatively narrow range between 1.2689 and 1.2735 before closing largely unchanged (1.2703, -0.09%). The current price movements are likely part of a consolidation phase and GBP is likely to continue to trade in range, expected to be between 1.2670 and 1.2740. 

Next 1-3 weeks: Our update from yesterday (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.