Downward momentum has slowed further; there is a low of confidence in a sustained break below 1.2710, UOB Group FX strategists Quek Ser Leang and Lee Sue Ann note.

May test 1.2710 in short term

24-HOUR VIEW: “Two days ago, GBP soared to a high of 1.2840. Yesterday, we indicated that ‘the rapid rise appears to be overdone, and instead of continuing to rise, GBP is more likely to trade in a range between 1.2740 and 1.2840.’ However, in London trade, GBP fell briefly to 1.2710, rebounded to 1.2817, and then traded sideways for the rest of the session. Further sideways trading seems likely today, expected to be in a range of 1.2745/1.2840.”