GBP/USD: Gains to be sustainable for now – Scotiabank

GBP/USD holds just under week’s high as uptrend is sustained. Economists at Scotiabank expect Cable to remain on solid foot.

GBP rally to remain positive while 1.1995 holds

“We continue to think the GBP has staged a strong enough rebound from the Sep all-time low for gains to be sustainable for now, at least; fiscal policy has been stabilized and market confidence has steadied which should allow the Pound to hold around 1.20 or a little better moving ahead.”

“The Pound’s gains have been supported by solid trend strength signals on the intraday and daily chart but the longer run studies suggest a fair degree of residual bearish momentum is intact, making it a bit harder work for the GBP to rally at the moment. Trends are, however, positive and we look for the GBP rally to remain positive while the Nov bull trend holds (support at 1.1995 currently).”

“Gains through 1.2155 (this week’s high) point to a resumption of the push higher.”