Trend momentum is weak, favouring more range trading – Scotiabank

GBP/USD is still finding support on dips below 1.21. Economists at Scotiabank analyze the pair’s outlook.

A minor bid for the Pound could extend a little more above 1.2160

Trading may remain relatively quiet ahead of the BoE policy decision on Thursday. Markets expect policy to be left on hold but the GBP may see a minor bid if the voting shows a tight split among the nine policymakers.

A minor bid for the Pound could extend a little more above 1.2160 but here too, trend momentum is weak, favouring more range trading. 

Support is 1.2070 and 1.2040.