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Cable could be headed towards the 1.2550 region in the next weeks, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “The quiet consolidation in GBP last Friday has resulted in momentum turning flat. In other words, GBP is expected to trade sideways for today, likely between 1.2425 and 1.2490.”

Next 1-3 weeks: “While GBP rose and touched a 1-month high of 1.2488 last week, upward momentum has not improved by much. However, the bias from here is for further GBP strength towards 1.2550. Looking ahead, GBP could move above 1.2550 but the odds for a sustained advance above the next resistance at 1.2600 are not high for now. On the downside, a breach of 1.2350 (‘strong support’ level) would indicate the current mild upward pressure has eased.”