GBP/USD: Failure to push above 1.26 points to weakness ahead – Scotiabank

GBP/USD is offered after choppy price action to test 1.26 on Tuesday. While below the 1.26 level, the cable remains vulnerable, economists at Scotiabank report.

Initial support aligns at the 1.25 figure zone

“GBP price action has been choppy since the start of the month but generally confined to 1.26 on the top and the high 1.24s on the bottom – aside from yesterday’s low of 1.2431.”

“The pound plumbing new lows since its May rally yesterday and lengthy sideways trading point to weakness ahead – especially if the GBP again fails at making a push above 1.26.” 

“Support is the 1.25 figure zone followed ~1.2480 and yesterday’s low.”