GBP/USD: Risk of a rebound remains while support in the low 1.2500 area holds – Scotiabank

GBP/USD slips but holds support in the low 1.2500 area. Economists at Scotiabank analyze the pair’s outlook.

Few positive things to note for the Pound on the intraday and daily charts

On the face of it, there are few positive things to note for the Pound on the intraday and daily charts. 

Price action is soft and trend momentum signals are aligned bearishly across the shorter-term oscillators. But Cable continues to hold above last week’s low (1.2520) just about and the weekly candle pattern that developed last week was bullish.

While support in the low 1.2500 area holds, the risk of a rebound remains; gains through 1.2575 would be positive for Cable.