GBP/USD has the 200-DMA at 1.3848 in its crosshairs – Scotiabank

The GBP/USD pair is making some clear headway above the 1.38 area.  A test of the 200-day moving average (DMA) at 1.3848 is on the radar, economists at Scotiabank report.

Short-term cable bullish

“OIS pricing does reflect a minor check in the recent firming in rate hike expectations but this likely reflects broader market moves rather than any real doubts about the BoE outlook at this point we remain constructive on the GBP on the crosses.”

“We are cautious about reading too much into developments but the GBP enjoys the backing of solid trend oscillators on the intraday and daily studies and is trading well through key, short-term MA signals which puts the 200-DMA at 1.3848 on the radar.”

“Key resistance is 1.3913, the mid-September high.”