GBP/USD can push a little higher in the short run to retest the low 1.2700 area – Scotiabank

GBP/USD stretches its upside. Economists at Scotiabank analyze the pair’s outlook.

Clear and sustained push through 1.2710 should see gains extend a little more

Solid gains in Cable Friday suggest spot can push a little higher in the short run to retest the low 1.2700 area. But the broader backdrop for the Pound remains somewhat challenged by weak or bearish leaning trend oscillators on the intraday and daily DMI signals. 

A clear and sustained push through 1.2710 should see gains extend a little more towards the recent range highs at 1.2775/1.2800. 

Support is firm now at 1.2600/1.2610.