GBP/USD: Scope for significant weakness looks limited – Scotiabank

GBP/USD is little changed after pivoting narrowly around the 1.2600 level. Economists at Scotiabank analyze the pair’s outlook.

GBP pivots around mid-point of its recent trading range

Cable is trading about midway between recent range extremes (1.2525/1.2685). 

Broader price trends are tilting somewhat bearish and trend momentum signals are supporting the soft undertone in price action. Recent Sterling losses towards 1.2500 have attracted better demand, however, and scope for significant GBP weakness looks limited in the context of some softening in the broader USD trend. 

Look for more range trading for now.