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Cable could attempt to reach the 1.2700 mark in the next weeks, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “GBP dipped and touched the bottom of our expected 1.2500/1.2600 range (low of 1.2500) before soaring past the top of range to hit an overnight high of 1.2633. Upward momentum has picked up, albeit not by much. From here, GBP could move above 1.2650 but the major 1.2700 resistance is unlikely to come into the picture for today. Support is at 1.2550 followed by 1.2500.”

Next 1-3 weeks: “While our positive view for GBP was correct, our expectation from Wednesday (03 Jun, spot at 1.2580) that ‘1.2650 could come in the picture relatively quickly’ did not quite materialize (GBP touched an overnight high of 1.2633). Upward momentum has slowed a tad but only a breach of 1.2480 (‘strong support’ was previously at 1.2460) would indicate that the positive phase has come to an end. Until then, a move to 1.2700 is still a distinct possibility.”