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Sterling a moderate outperformer on the day. Economists at Scotiabank analyze GBP’s outlook.

Charts remain bullish

Sterling is edging closer to 1.2589 resistance (50% retracement of the July/October fall in Cable) and looks set for its highest weekly close since early September.

Gains in the Pound have overcome the 100 and 200-DMA over the past week or so and have the support of a bullish alignment of trend oscillators on the intraday, daily and weekly charts.

Sterling will find support on minor dips (to the 1.25 area) in the short run and looks poised to extend its rebound from a technical point of view.

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