GBP/USD may be able to strengthen somewhat in the short run – Scotiabank

Economists at Scotiabank analyze GBP/USD technical outlook.

Cable could retest resistance at 1.2800/1.2810

The daily GBP/USD chart reflects heavy price action overall Thursday but the intraday pattern of trade shows the Pound rebounding from trend support just under 1.27 in a constructive manner – the 6-hour candle chart shows a bullish ‘morning star’ signal developing today. 

The GBP may be able to strengthen somewhat in the short run to retest resistance at 1.2800/1.2810. 

See – GBP/USD: Head and Shoulders pattern points towards potential downside – SocGen