GBP/USD: A strong uptrend is developing – Scotiabank

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GBP/USD edges off high but should hold 1.25 for now, economists at Scotiabank report.

Intraday price action is a little soft-looking

New short-term cycle highs for Cable above 1.25 (100-DMA at 1.2505, now support) keep the broader undertone positive but intraday price action is a little soft-looking, with the Pound edging back from the mid-1.25s. 

Support around the figure should hold up in the near-term at least. 

Trend momentum is bullish on the intraday, daily and (just about) weekly DMI studies, implying a strong uptrend is developing still. 

Resistance is 1.2590 (50% Fibonacci of the H2 drop in Sterling).