GBP/USD: A pause in the underlying bull trend before another push higher – Scotiabank

GBP/USD consolidates around key support in the mid-1.24s. Economists at Scotiabank expect the pair to extend its up move toward 1.2750.

Firm support on modest GBP dips

“Look for more range trading in the short run but expect firm support on modest GBP dips.”

“The basic message from short-term price action (developing ‘bull flag’) remains essentially the same – a pause in the underlying bull trend before another push higher.”

“Cable dips have been well supported at or just below 1.2440/45 (former highs and now major support).”

“Trend momentum remains bullish, implying limited downside and ongoing upside risk (potential to 1.2750/00).”