GBP/USD could test 1.25/1.26 in the short-term – Scotiabank

FX Strategists at Scotiabank sees the likeliness of Cable to re-visit the 1.25/1.26 area in the near term.

Key Quotes

“We think the GBP could recover a little more ground near-term but it remains susceptible to uncertainty and weakness in the longer run. PM May wants to press ahead with Article 50 declaration early next year and speculation persists that an early election may be one way of clearing parliamentary opposition. Meanwhile, we think the BoE stands ready to provide more accommodation if the economy warrants support”.

“GBPUSD has made some clear and notable technical progress this week, clearing resistance in the low 1.23 area, trend resistance off the June high. That suggests scope for the GBP to extend towards 1.25/1.26 potentially”.

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