GBP/USD: Weakness could extend to the mid/upper 1.25s on loss of support at 1.2630 – Scotiabank

GBP/USD is the big mover today, trading lower near 1.2650. Economists at Scotiabank analyze the pair’s outlook.

Return to the mid-1.27s likely on a break past 1.2680

Short-term price signals suggest some loss of momentum for Cable today although spot is holding a consolidation range, with longer-term signals still positively aligned for the Pound. 

Intraday support is 1.2650 and 1.2630. Loss of support through the latter point could see weakness extend to the mid/upper 1.25s. 

Resistance is 1.2680, with the return to the mid-1.27s likely above there.