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GBP/USD: Minor dips should remain well-supported – Scotiabank


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Economists at Scotiabank analyze GBP outlook.

EUR/GBP to see a further fall towards support around 0.8450

Sterling gains have steadied versus the USD, with oscillator signals veering towards overbought on the intraday and daily studies. 

Price action is neutral, rather than outright bearish at this point, however, and the broader uptrend in Cable remains well-entrenched on the charts after the pound’s break above major trend resistance last week. 

Absent stronger signs of a reversal, minor GBP dips should remain well-supported. 

EUR/GBP is pressuring the low 0.85 area; trends here point to a further fall towards support around 0.8450.