GBP/USD: Technical condition looks relatively strong – Scotiabank

Sterling has drifted a little against the USD. But Cable’s technical patterns lean bullish, economists at Scotiabank report.

Loss of support in the mid-1.21s could dump Cable back to the low/mid-1.2000s

“Short-term charts show the GBP is well-supported against minor trend support off of last week’s lows in the mid-1.21s and that price action is consolidating in a bull flag pattern (renewed gains above 1.2175 intraday).”

“Loss of support in the mid-1.21s could, however, dump the Pound back to the low/mid-1.2000s in rapid order.” 

“High US inflation data may give the USD an offsetting lift against the Pound but the near-term trend looks relatively positive in Cable at this point.”