Scotiabank Economists Analyze GBP/USD’s Technical Outlook
Economists at Scotiabank are analyzing the technical outlook for the GBP/USD pair, which is currently consolidating in the mid-1.25s. While there may be some modest downside risk in the very near term based on intraday price action, the overall trend for the Pound remains positive.
The Pound has had a solid week and reached a four-week high earlier today, attracting trend chasers and momentum traders who may seek to test the early May peak. Although there is a possibility of limited downside potential in the short term, the broader trend in Cable appears constructive.
The positive developments observed on the intraday and daily trend oscillators (DMI) provide further support for the Pound’s outlook. This suggests that the downside for the GBP/USD pair is likely to be limited for the time being.
Scotiabank economists will continue monitoring the technical indicators and market trends to provide further insights into the GBP/USD pair’s trajectory.