Holding support in the low 1.2700 area could see the short-term trend stabilize – Scotiabank

GBP/USD remains pinned back to the low 1.2700s. Economists at Scotiabank analyze the pair’s outlook.

Trend oscillators are mixed

Trend oscillators are mixed and spot is holding a tight trading range above 1.2700. Broader price signals suggest a soft undertone in GBP/USD after a soft close last week but holding support in the low 1.2700 area could see the short-term trend stabilize. 

Resistance is 1.2765/1.2770. Support is 1.2700/1.2710.

See: EUR/GBP seen stabilising around the 0.8500 or trading closer to the big 0.8500 support in the short term – ING