GBP/USD holds support below 1.2600. Economists at Scotiabank analyze the pair’s outlook.
Markets continue to reflect the expectation that the BoE will hold off until August before easing. Rate expectations are perhaps providing the GBP with a bit of a cushion against the USD’s advance.
Sterling has rebounded modestly from the earlier session low. The GBP/USD pair based around 1.2590/1.2600, effectively a retest of the 200-Day Moving Average where Cable has found support in the recent past.
Gains through 1.2640/1.2650 resistance are needed to give the GBP an additional lift from here, however.
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