GBP/USD drifts lower. Economists at Scotiabank analyze the pair’s outlook.
There is a raft of key data reports due in the coming days which will likely shape the Pound’s near-term direction. Employment data are due on Tuesday but CPI (expected to firm a little) Wednesday and GDP (expected to weaken) Thursday will drive GBP sentiment. It may be a bumpy ride for the Pound this week.
Short-term charts lean bearish but the Pound’s solid move off last week’s low and relatively firm close suggest some resilience on the weekly chart.
Short-term resistance is 1.2650. Support is 1.2570/1.2575. Key support is 1.2520.