Another test of strong support around 1.2600 may be developing – Scotiabank

GBP/USD trades softer in range. Economists at Scotiabank analyze the pair’s outlook.

Price signals are bearish

Spot losses on the session so far look relatively mild and the GBP remains well within recent trading ranges. But price signals are bearish. 

Intraday trading has developed a bearish ‘evening star’ pattern over the past 24 hours and the GBP is trading through minor trends support last week’s low at 1.2600. 

Daily trading is shaping up negatively, albeit with a long way to go throughout the session still. Another test of strong GBP support around 1.2600 may be developing.