GBP/USD slips back from intraday high. Economists at Scotiabank analyze the pair’s outlook.
Scope for losses is limited
Intraday price action is reflecting some – potential – softness.
Price action suggests some caution is warranted but solidly bullish underlying trends should mean that scope for GBP losses is limited. Support should emerge around the figure, or through the mid/ upper 1.28s at worst at this point.
There is some (psychological) resistance at 1.30 but the broadly bullish technical set up suggests gains may extend towards the 1.33 area.
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