GBP/USD slides in line with peers but rebound from low looks constructive, economists at Scotiabank say.
Support is 1.2580/1.2590
The British Pound has yielded to the prevailing strength of the US Dollar, mirroring the performance of other major currencies. The descent of Sterling appears to be driven primarily by the broader move towards the US Dollar, with no apparent fundamental catalysts for the decline. Despite this, the GBP has encountered solid support around its daily lows, suggesting the potential for a robust rebound, especially as the North American session commences.
The intraday chart patterns show a bullish outside range, indicating a potential low or reversal. This development on the hourly chart comes in response to Cable’s earlier decline to 1.2622.
If the British Pound manages to surpass the 1.2665/1.2670 level during the session, it could contribute to strengthening the rebound towards 1.2700 and beyond.
Support is 1.2580/1.2590.
