24-hour view: Yesterday, investors held the view that GBP could keep on trading unevenly, likely between 1.2900 and 1.3020. The unexpected diminishing in instability came as a shock as GBP traded a tranquil way and inside a moderately restricted range (between 1.2911 and 1.2979). The price activity offers no new pieces of information today, GBP is probably going to trade sideways, expected to be within a 1.2910/1.3010 range.
Next 1-3 weeks: Last Friday (16 Oct, spot at 1.2905), investors held the view that GBP was probably going to trade on a marginally guarded mode with 1.3050 acting as a solid obstruction. GBP rose to a high of 1.3024 on the 19th of October, and while descending weight has facilitated, only a break of 1.3050 would demonstrate that GBP was not prepared to test the significant help at 1.2845. As such, there is no adjustment in investors’ view until further notice. That said, to revive the current flagging energy, GBP needs to move and remain underneath 1.2900 within these 1 to 2 days or the chances for a test of 1.2845 would reduce rapidly.