24-hour view: On Tuesday, GBP rose to a high of 1.2558. Yesterday (Wednesday), we indicated that “despite the advance, upward momentum still has not shown much improvement.” We held the view that “there is scope for GBP to continue to edge higher, even though 1.2580 is still likely out of reach for now.” However, GBP did not edge higher, but fell to 1.2450. Upward pressure has faded, and today, GBP is likely to trade sideways, probably in a range of 1.2440/1.2530. 

Next 1-3 weeks: Our latest narrative was from two days ago (21 Nov, spot at 1.2505), wherein we indicated that “despite the mild increase in momentum, there is still a chance for GBP to rise to 1.2580. Yesterday, GBP fell and broke below our ‘strong support’ level of 1.2460 (low has been 1.2450). The breach of the ‘strong support’ indicates that the GBP strength that started in the middle of last week has ended. GBP appears to have moved into a range-trading phase and is likely to trade between 1.2360 and 1.2560 for the time being.