GBP/USD neutral/bearish near term – Scotiabank

Chief FX Strategist at Scotiabank Shaun Osborne noted GBP/USD's outlook stays neutral to bearish in the short term.

Key Quotes

“Cable’s March rally has stalled, leaving spot still within the confines of the 1.1950/1.2750 range that has prevailed since the sharp fall in mid-2016”.

“With the topside move running out of gas, the risk is tilting back to a renewed push to the lower end of the range”.

“Shorter-term technical signals are not especially negative, however, and consolidation, with a modest downside bias may be the order of the day today”.

“We see resistance at 1.2475 intraday and support at 1.2405. Loss of support at 1.2380, last week’s low, tips the technical balance of risks more obviously and immediately to the downside”.