GBP/USD set to test the 1.37 on a breach of 1.3635 – Scotiabank

GBP/USD has settled in the lower 1.36s after its decline from the mid-figure area that began last week. Economists at Scotiabank expect cable to find solid support at 1.36 and bounce back to test the 1.37 level.

Below 1.3590/600, support is at 1.3575

“The 1.36 figure zone is set to act as decent support for the GBP in its upward trend since mid-December.”

“The 1.3635 mark fell short of a test of mid-figure resistance through which the GBP will have to break to form a more convincing reversal of recent losses and test 1.37; the 200-day MA at 1.3734 follows as resistance.” 

“Below 1.3590/600, support is 1.3575 and the 100-day MA of 1.3546.”