GBP/USD: Early May high of 1.2678 back within reach – Scotiabank

Economists at Scotiabank analyze GBP/USD outlook.

Limited potential for countertrend corrections

Hawkish rate expectations are extending the GBP solid support.

Cable’s gains put the May high at 1.2678 easily within reach. 

Solid trend momentum across the intraday, daily and weekly DMI oscillators support the firm undertone and point to limited potential for countertrend corrections and ongoing GBP gains towards the mid-1.27s (61.8% retracement of the 2021/22 GBP/USD decline at 1.2758).

See – GBP/USD: A larger uptrend is not ruled out on a cross above 1.2670/1.2750 resistance – SocGen