Bulls may test 1.2900/50 near term – Scotiabank

The Pound Sterling (GBP) is a marginally better performer among the core majors so far today, with gains supported by further signs of a growth renaissance in the economy.

GBP set to rise towards 1.2900/50

“June GDP was unchanged in the month, as expected, while UK Q2 GDP rose 0.6% q/q, also in line with expectations. June Industrial Production rose a stronger than forecast 0.8% m/m. Manufacturing jumped 1.1%, well ahead of calls for a 0.2% gain. Firm growth trends will not stop the BoE from easing rates again in the next few months but the data tilt risks a little further against a September move.”

“Sterling’s rebound from the upper 1.26s has paused over the past couple of sessions but price patterns are still leaning bullish for the pound as spot consolidates gains. A bullish flag/wedge pattern may be developing on the intraday chart. Gains through 1.2865/75 in the next day or so should be the cue for the GBP rise to resume towards 1.2900/50.”