GBP/USD upside could extend to 1.2770 – Scotiabank

Shaun Osborne, Chief FX Strategy at Scotiabank, believes the rally in Cable could visit the 1.2770 region in the near-term.

Key Quotes

“Yesterday’s dip in Cable proved minor and the pound’s advance has quickly resumed”.

“Last week’s bullish outside range week suggests that a major low point has been reached; gains above the 40-day MA Monday support the bullish outlook”.

“Short-term trend strength signals are positively aligned and we think the GBP advance can extend. We spot support now at 1.2400/05 (major) and expect dips to the mid/upper 1.24s will be well-supported by bargain hunters. The GBP rally should extend towards the early Dec high at 1.2770”.