GBP/USD neutral near term – Scotiabank

In view of FX Strategists at Scotiabank, Cable could see 1.3000 re-tested in the near term.

Key Quotes

“Sterling pushed sharply higher overall yesterday and while the import of price action looks positive on the face of it (the daily chart showing an outside range session developed Wednesday), the pound clearly struggled to hold on to gains through the close of the session and remains capped by the 40-day MA (1.2962)”.

“If gains are not especially persuasive from our point of view at this point, the GBP at least remains well above key support (1.2800). Essentially, we think the pound will need to push decisively above 1.30 to trigger more technical support while a break under 1.28 is likely to see losses accumulate fairly quickly again”.