GBP/USD is on track to resettle into a 1.36-1.38 range – Scotiabank

Cable’s steadily higher price action since yesterday’s test of 1.3450 saw it test the 1.36 mark earlier today before selling pressure emerged. However, economists at Scotiabank expect GBP/USD to tackle the 1.3600/10 resistance area.

Support is seen at 1.3550

“Technical signals point to a re-test of the level (1.3600/10) to be followed by intermediate resistance in the mid-figure area and then firmer around 1.37 (50-day MA at 1.3693).”

“A reversal of its losses above 1.36 may see the GBP/USD pair resettle into a 1.36-138 range but within a minor downtrend as it reached lower highs in its past three periods of strength.”

“Support is 1.3550 followed by the figure area.”