After the recent movement, the pair has a real opportunity to "visit" the level of 1.2580 in the near future. Last Friday, there was a warning that the quiet trading in the narrow range that has been observed over the past few days is near its end, and a sharp breakthrough of the 1.2380 level can lead to a rapid increase to 1.2420. Although the expectations about the completion of the calm trading phase were true, the subsequent "explosive" price movement was underestimated, because instead of rapid growth to 1.2420, the pound rose to a high of 1.2506. A large-scale rally is unlikely to receive further steady movement, GBP is likely to consolidate profits and return to quiet trading again in the range of 1.2450–1.2530.
What to expect in the next 1-3 weeks. In principle, there is no reason to exclude further strengthening of the pound. GBP may leave the current trading range, as it has easily overcome several strong resistance levels and rose to a high of 1.2506, which came as a surprise (overall, the currency went up 1.37% last Friday, the largest daily growth since March of this year). The recovery, which began more than a week ago, has moved into a new phase, and we see that the GBP can test the level of 1.2580, even if it can not maintain the current growth rate. On the other hand, only a break of 1.2350 (strong support level) will indicate that the GBP has maintained strength and continues to develop.
