GPB/USD to see renewed test of 1.2450 on gains through 1.2310 – Scotiabank

GBP/USD trades slightly higher. Economists at Scotiabank analyze the pair’s outlook.

Charts lean bullish

Technical signals are leaning bullish after a solid day for the Pound on Monday. 

A clear net gain on the day formed the third leg of a bullish ‘morning star’ pattern on the daily candle chart, with the base developing around the 40-Day Moving Average support for Cable (1.2207). 

Gains through 1.2310 target a renewed test of 1.2450.

See: GBP likely to remain in a narrow trading range – MUFG