GBP/USD: Another test of 1.28+ levels would not surprise – Scotiabank

GBP/USD has surged to the upper 1.2700s. Economists at Scotiabank analyze the pair’s outlook.

Daily support is firming up in the 1.2650/1.2675 zone

Sterling continues to draw support on dips. Intraday gains took the Pound back to the upper 1.2700s, more than a cent up from Tuesday’s low.

The broader 1.2600/1.2825 range remains intact, and gains show signs of stalling on the intraday chart. But bear trend momentum is weakening on the daily study and turning bullish on the intraday DMI while daily support is firming up in the 1.2650/1.2675 zone. 

Another test of 1.28+ levels would not surprise.