GBP/USD: Support below 1.2675/1.2680 sits at 1.2600/1.2610 – Scotiabank

GBP/USD trades weaker below support in the low 1.2700s. Economists at Scotiabank analyze the pair’s outlook.

Resistance is 1.2745/1.2750

UK CPI data due on Wednesday and Thursday’s BoE decision may help limit near-term losses.

Sterling’s extended run lower from its early March peak pushed below minor support in the low 1.2700 zone to test the 40-DMA at 1.2680. Short-term price action suggests a potentially positive response to that test in the form of a bullish ‘hammer’ pattern, however. 

Resistance is 1.2745/1.2750. 

Support below 1.2675/1.2680 sits at 1.2600/1.2610.