GBP/USD should find support on dips to the 1.2600/1.2620 area – Scotiabank

GBP/USD drifts after solid gains last week. Economists at Scotiabank analyze the pair’s outlook.

More corrective losses may be in order in the short run

The GBP/USD pair traded positively overall last week but late week losses off the 1.2794 high are extending so far today and more corrective losses may be in order in the short run.

Cable should find support on dips to the 1.2600/1.2620 area, however, with short, medium and long-term trend signals still aligned bullishly despite losses since Friday’s peak.