GBP/USD: Gains through 1.2850 should help develop stronger technical tone – Scotiabank

GBP/USD rebounds tentatively from the 1.28 area. Economists at Scotiabank analyze the pair’s outlook.

Intraday techs are bullish

Bargain hunters appear to be supporting the GBP on dips, with positive yield spreads versus the USD still providing support for GBP sentiment.

Intraday trading patterns reflect firm demand and a bullish, short-term price signal (bull ‘hammer’ pattern) as Cable edged briefly under 1.28 earlier. 

GBP gains through 1.2850 should help develop a stronger technical tone in the short run at least.

See: GBP/USD to reach the 1.40 level by end-2024 – Scotiabank