GBP/USD: Daily close above 1.2180 would add to momentum for deeper push above 1.22 – Scotiabank

GBP/USD trades firmer near 1.22. Economists at Scotiabank analyze Sterling’s outlook.

EUR/GBP gains above 0.87 suggest a new, higher trading range between 0.87 and 0.89

Sterling is firm but GBP/USD gains are struggling against 1.22, trend resistance off the July high. The market pushed through this trend briefly earlier in October but needs to make clearer progress above the figure to extend. 

A daily close above 1.2180 (21-DMA) would be a modest positive and add to momentum for deeper push above 1.22 towards the 40-DMA at 1.2254 currently. 

EUR/GBP gains above 0.87 are slowly developing and suggest a new, higher trading range for the cross between 0.87 as the base and 0.89 as a medium-term bull target over the next three-six months.