24-hour view: Yesterday, we held the view that GBP “could test 1.2555 before leveling off.” However, GBP traded in a relatively quiet manner between 1.2460 and 1.2531. The price action appears to be consolidative. Today, we expect GBP to trade between 1.2455 and 1.2525.

Next 1-3 weeks: We have held a negative GBP view since early last week. Yesterday (12 Sep, spot at 1.2505), we noted that downward momentum has slowed. We highlighted that “if GBP breaks above 1.2555, it would mean that GBP is not weakening further.” We continue to hold the same view.