24-hour view: We highlighted yesterday that GBP “could rebound further to 1.2950”. We added, “The major resistance at 1.3000 is unlikely to come into view.” In line with our expectations, GBP rebounded further (high was 1.2960). Upward momentum has improved a tad, and today, GBP could rise to 1.2975 before the risk of a pullback increases. The major resistance at 1.3000 is still unlikely to come under threat. On the downside, if GBP breaks below 1.2880 (minor support is at 1.2900), it would mean that the current upward pressure has eased.

Next 1-3 weeks: Our update from yesterday (26 Jul, spot at 1.2895) is still valid. As highlighted, the recent downward pressure has faded. For now, we expect GBP to trade in a range, probably between 1.2800 and 1.3100.