GBP/USD steadies but loss of August range tilts risks to the downside, analysts at Scotiabank report.

Regaining 1.26 may steady the Pound in the short run

Loss of support for the Pound at 1.2620, the base of the August trading range, has negative implications going forward; after topping out just above 1.28 so far this month, the loss of support at 1.26 implies the risk of losses extending to the low 1.24s in the next few weeks. 

Regaining 1.26 may steady the Pound in the short run, particularly with the sell-off looking overextended.