GBP/USD will have to overcome 1.2700/1.2710 for gains to extend – Scotiabank

GBP/USD is marginally lower on the day but is essentially marking time in its established trading range of 1.2520/1.2825. Economists at Scotiabank analyze the pair’s outlook.

Trend dynamics and price signals are bullish on the intraday chart

Sterling is a little above the midpoint of the broad, 1.2520/1.2825 range in pace since the start of the year.

Trend dynamics and price signals are bullish on the intraday chart but the daily chart reflects resistance at 1.2700/1.2710 which the GBP will have to overcome for gains to extend. 

Support is 1.2600.