Regaining 1.2800+ would be a short-term positive for the Pound – Scotiabank

GBP/USD has found decent support on dips over the past week but gains have been capped below 1.28. Economists at Scotiabank analyze the pair’s outlook.

GBP should remain well-supported on dips

Sterling still looks relatively ‘cheap’ in broad terms and the risk of an extended BoE policy tightening cycle remains alive. Sterling should remain well-supported on dips.

Regaining 1.2800+ would be a short-term positive for the Pound at least. 

Support is 1.2705.

See: The Pound will come under depreciation pressure in the medium term – Commerzbank