GBP/USD: Regaining 1.27 is critical to show some sustainable technical strength from here – Scotiabank

Sterling is showing signs of stabilizing after yesterday’s slide under 1.27. Economists at Scotiabank analyze GBP/USD technical outlook.

Gains are not yet significant enough to exclude renewed softness

Sterling gains from the 1.26 zone are picking up a little more momentum above 1.2650 intraday but gains are not yet significant enough to exclude the risk that the rebound represents a consolidation ahead of renewed softness. 

Regaining 1.27 is the benchmark the Pound will have to beat to show some sustainable technical strength from here.