Scope for more losses over the next few weeks on weakness through key support at 1.2610 – Scotiabank

GBP/USD holds range amid still bullish trend momentum but downside risks linger, economists at Scotiabank report.

The pattern of trade on the intraday chart continues to shape up bearishly

The GBP charts show the Pound retains a lot of bullish momentum across the short, medium and long-term DMI oscillators which does suggest limited downside pressure on this market for now. 

But the pattern of trade on the intraday chart continues to shape up bearishly and leans towards a push lower to test – at least – key support at 1.2610. Weakness through here will imply scope for more GBP losses over the next few weeks.