Gains through 1.2665/1.2670 should help deepen the rebound to 1.2700 – Scotiabank

GBP/USD slides in line with peers but rebound from low looks constructive, economists at Scotiabank say.

Support is 1.2580/1.2590

Sterling has succumbed to the stronger USD tone, in line with its major currency peers. There are no obvious fundamental drivers for Sterling’s slide, beyond the shift into the USD amid weaker risk assets. The GBP has found firm support around the daily low, however, and may be staging one of the stronger rebounds among its peers as the North American session gets underway.

Intraday chart patterns reflect a low/reversal (bullish outside range) developed on the hourly chart in response to Cable’s drop to 1.2622 a little earlier. 

GBP gains through 1.2665/1.2670 on the session should help deepen the rebound to 1.2700+. 

Support is 1.2580/1.2590.