GBP/USD: Firm trend should extend towards 1.30 in the weeks ahead – Scotiabank

GBP/USD holds impressive gains. Economists at Scotiabank analyze the pair’s outlook.

Technical outlook remains constructive

The BoE meets next week and a 25 bps hike – with hawkish guidance is expected. Sterling should remain well-supported on moderate dips for now as a result. 

With trend momentum oscillators aligned bullishly across short, medium-, and long-term studies, the firm trend should extend towards 1.30+ in the weeks ahead (76.4% retracement resistance at 1.3328).

See – GBP/USD: There is 'fresh air' between current levels and 1.3000 – ING