GBP/USD could propel back to the 1.30 area – Scotiabank

GBP/USD struggles in the mid-1.27s. Economists at Scotiabank analyze the pair’s outlook.

A close above 1.2750 would be a technical plus

Sterling’s advance versus the USD stalled in the mid-1.27s, making for an unconvincing break above short-term trend resistance at this point. Broader price signals lean GBP-positive, however, and the GBP’s firm rejection of the low 1.26s still sets up a potential double bottom (neckline trigger at 1.2825) which could propel Cable back to the 1.30 area. 

A close above 1.2750 today would be a technical plus for the Pound.