The GBP/USD pair is marginally firmer on the day. Economists at Scotiabank analyze the Cable’s outlook.
Directional risks are tilted to the topside
The overall pattern of short-term trade remains constructive and the broader technical setups still suggest directional risks are tilted to the topside.
GBP/USD is effectively consolidating within a bull pennant pattern.
Firm support on GBP dips at 1.2375 this week is keeping the undertone bullish.
Gains through 1.2420/1.2425 should be GBP-supportive.
A rise above 1.2455 targets a move to 1.2525.
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