GBP/USD to enjoy additional gains towards 1.2720 – Scotiabank

GBP/USD continues to push on, reaching the low 1.26s. Economists at Scotiabank analyze the pair’s outlook.

Cable targets low 1.27s

New highs for the move up and solidlooking DMI oscillators across the short, medium and long-term studies give the GBP a positive technical undertone. 

Cable closed out last week above the 50% retracement resistance (1.2589) which targets additional gains towards 1.2720 (61.6% Fib) now. 

Minor dips to the figure area (or just below) should be well-supported.

See – EUR/GBP: A close under 0.8660 could unlock 0.8630 or even 0.8600 – ING