GBP/USD: Additional gains through 1.2740/1.2750 should add to near-term upside momentum – Scotiabank

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GBP buyers re-emerge in the high 1.26s. Economists at Scotiabank analyze Cable’s outlook.

Technical signals shaded somewhat negatively for the GBP in the short run

Sterling looks well-supported on the session so far but technical signals are shaded somewhat negatively for the GBP in the short run after the heavy selling pressure from the low 1.28s that developed late last week. 

Firm support in the upper 1.26s is notable, however, and additional gains through 1.2740/1.2750 should add to near-term upside momentum and a retest of the low 1.28 area.

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