A break of 1.2565 will not be surprising; the next significant support at 1.2490 is not expected to come into view for now. In the longer run, momentum received a boost; GBP is likely to break below 1.2565. The next level to monitor is 1.2490, UOB Group’s FX strategists Quek Ser Leang and Lee Sue Ann note.

The next level to monitor is 1.2490

24-HOUR VIEW: “We highlighted yesterday that ‘further range trading appears likely, even though the softened underlying tone suggests a lower range of 1.2615/1.2685.’ The sudden plunge that sent GBP to a low of 1.2577 was surprising. Given the rapid increase in momentum, a break of 1.2565 will not be surprising. However, deeply oversold conditions could indicate that the next significant support at 1.2490 is not expected to come into view for now. To sustain the momentum, USD must remain below 1.2640 (minor resistance is at 1.2615).”