Gains through the low 1.28s should drive further another leg higher – Scotiabank

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Sterling is marginally lower on the day. Economists at Scotiabank analyze GBP/USD outlook.

Thursday’s failure to push through 1.28 is a minor setback

Sterling’s early week rebound from the low 1.26 area still casts a positive technical look over the short-term chart but progress has been limited and Thursday’s failure to push through 1.28 (40-DMA at 1.2805) is a minor setback for the Pound at least. 

But short-term trend momentum remains bullish and gains through the low 1.28s (recall that 1.2820 is the bull trigger for a 1.2620 double bottom) should drive further gains. 

Intraday support is 1.2700/1.2710.