GBP/USD: Rebound is showing signs of petering out in the low-1.2700s – Scotiabank

Cable’s rebound from 1.2600 on Wednesday extends range trade. Economists at Scotiabank analyze the GBP/USD outlook.

Selling pressure merging above 1.2700

Wednesday’s squeeze higher in the Pound perpetuates the broader sideways range in Cable for a little longer.

The GBP’s bullish reaction to Wednesday’s test of the 1.2600 range base in place over the past month is showing signs of petering out in the low-1.2700s intraday, however, with the short-term charts reflecting better selling pressure merging above 1.2700. 

Minor support is 1.2675 intraday.