GBP/USD is soft but off earlier lows. Economists Scotiabank analyze the pair’s outlook.
Soft undertone on the charts
Sterling traded heavily on Tuesday and retains a weak undertone today.
Technical momentum is accumulating bearishly for the GBP on the intraday and daily oscillators. Sterling has not made a new low against the USD on this move down, however – in contrast to many of its peers.
The early February low at 1.2519 remains intact and a grouping of support points around the 1.2500 zone suggests USD gains may be held up for now.
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