Scope for losses appears limited – Scotiabank

GBP/USD gains are blocked in the mid-1.26s. Economists at Scotiabank analyze the pair’s outlook.

Cable is consolidating

The short-term bull trend is showing some signs of tiring but underlying dynamics remain bullish and scope for losses appears limited at this point. 

Sterling’s break above 1.2586 – the 50% retracement resistance of the July/October decline in the Pound keeps the upside focus on a push higher to the low 1.27s (61.8% retracement at 1.2716).

Support is seen at 1.2565/1.2570.

See – GBP/USD: Heading towards 1.2670/1.2720 – SocGen