In view of FX Strategists at UOB Group, Cable still targets the mid-1.2900s in the near term.
“The rapid pull-back from a high of 1.2860 appears to have room to extend lower to test the strong support at 1.2735/40. At this stage, a sustained move below this level is not expected (next support at 1.2700)”.
“We just shifted to a bullish stance yesterday and there is no change to the view. Despite being overbought, the current GBP rally appears to have scope to extend higher towards 1.2950. Only a move back below 1.2660 would indicate that a temporary top is in place”.