GBP/USD: Losses likely to remain limited in the near-term – Scotiabank

GBP/USD tests retracement resistance in the low 1.27s. Economists at Scotiabank analyze the pair’s outlook.

Underlying trend dynamics are bullish

Sterling gains peaked around 1.2730, just above the 1.2720 61.8% retracement resistance. 

Losses off the daily high are painting a bearish short-term picture for the pound on the intraday chart. 

Underlying trend dynamics are bullish – but also somewhat stretched – for the GBP. Losses here are likely to remain limited in the near-term as well. Cable support is seen at 1.2645 and 1.2600/1.2610.