In the view of Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group, GBP/USD could still set sail to the 1.2900 region in the next few weeks.

Key Quotes

24-hour view:Our view for GBP to edge above 1.2850 yesterday did not materialize as it traded in a range of 1.2772/1.2836. GBP appear to have entered a consolidation phase and it is likely to trade in a range between 1.2765 and 1.2830. 

Next 1-3 weeks: Our most recent narrative was last Friday (16 Jun, spot at 1.2780) wherein “GBP strength is intact and the next level to aim for is 1.2900.” We continue to hold the same view. On the downside, a breach of 1.2700 (no change in ‘strong support’ level) indicates that the GBP strength started more than a week ago has ended.