GBP/USD tests retracement resistance in the low 1.27s. Economists at Scotiabank analyze the pair’s outlook.
Underlying trend dynamics are bullish
Sterling gains peaked around 1.2730, just above the 1.2720 61.8% retracement resistance.
Losses off the daily high are painting a bearish short-term picture for the pound on the intraday chart.
Underlying trend dynamics are bullish – but also somewhat stretched – for the GBP. Losses here are likely to remain limited in the near-term as well. Cable support is seen at 1.2645 and 1.2600/1.2610.
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