GBP/USD: Potential for gains to extend to 1.27/1.28 – Scotiabank

GBP/USD is consolidating in the low 1.25 area. Economists at Scotiabank expect the pair to enjoy further gains.

Short-term price patterns are mildly bullish

“The fact that Cable is trading on a 1.25 handle remains a broader positive for the Pound, given it has struggled mightily to extend gains through the mid-1.24 area this year.”

“Short-term price patterns are mildly bullish, given the steady uptrend in spot since the mid-Apr test and rejection of key support at 1.2350/60.”

“Friday’s drop from the intraday high is a setback from a technical point of view but trend momentum remains bullish and losses should remain limited.”

“New cycle highs would be bullish and reaffirm potential for gains to extend to 1.27/1.28.”