The intraday undertone for the GBP is weak – Scotiabank

Cable edged to a three-month low in the low 1.24s. Economists at Scotiabank analyze GBP/USD’s technical outlook.

Three tests of the 1.2440 area do set up a potential triple bottom

The intraday undertone for the GBP is weak. 

Price action has been soft over the past week but support in the low 1.24 zone has held successive tests (just ahead of the 200-DMA at 1.2430). The GBP did, however, snap back from early session losses quite well and the three tests of the 1.2440 area over the past week do set up a potential triple bottom (bull trigger at 1.2550).