GBP/USD: Short-term trading patterns are bullish – Scotiabank

Cable has made a little more progress after regaining 1.29 in late trade on Tuesday, a cent off of Monday’s low. Economists at Scotiabank analyze GBP/USD outlook.

Technicals are bullish

Short-term trading patterns are bullish. The charts highlight steady accumulation of the GBP over the past few trading sessions as the GBP weakened, resulting in a clear, bullish ‘rounded low’ pattern. 

Some consolidation, perhaps nearer 1.2950/1.30, may develop from here but these sorts of patterns are typically followed by a more dynamic phase of market movement (higher in this case). 

Minor GBP dips remain a buy from a technical point of view. 

Resistance is 1.2965 (minor). Support is firm at 1.2800/25.