GBP/USD: Quick push on through 1.2510 to open up gains to 1.26 – Scotiabank

GBP/USD pushed higher to edge a little above 1.25 before easing back. Economists at Scotiabank analyze the pair’s outlook.

Cable should see firm support on dips

Sterling retains a firm undertone, backed by positive trend momentum on the short, medium and long-term DMIs. Intraday gains have stalled above 1.25 again, however, where the market peaked late last week and right on the 100-DMA. 

Intraday dips should remain well supported but loss of support at 1.2370 would imply potential for the Pound to slide back to the mid-1.22 area. 

A quick push on through 1.2510 removes that risk and targets gains to 1.26.