GBP/USD: Support remains at 1.2450, just ahead of the 200-DMA at 1.2430 – Scotiabank

GBP is underperforming on the day as Cable drops below the 1.25 level. Economists at Scotiabank analyze the GBP/USD technical outlook.

Resistance seen at 1.2550

Sterling gains through the low 1.25 area (minor double bottom trigger) on Monday failed to deliver any significant gains (towards the measured move potential in the upper 1.25s). 

Support remains at 1.2450, just ahead of the 200-Day Moving Average (DMA) at 1.2430, with resistance at 1.2550.

See: GBP/USD could extend the decline on failure to defend 1.2420 – SocGen