GBP/USD to race higher towards 1.3750 on a break past 1.3650 – Scotiabank

GBP/USD has broken above 1.36. Economists at Scotiabank expect cable to enjoy further gains towards the 1.3750 region on a path over 1.3650.

1.36 turns into support 

“Cable is on a decent upward trajectory since its short-lived break under 1.35 on Tuesday, and today’s climb above 1.36 points to a test of the GBP’s two-week channel’s ceiling of ~1.3650 – after some intermediate resistance at ~1.3625. 

“A break past the mid-1.36s zone would point to an extension of its week-long rally in late-Jan/early-Feb toward a test of the mid-Jan high in the mid-1.37s. The 1.3665/70 area also stands as trendline resistance from its losses since mid-2021.”

“Support is the figure zone followed by ~1.3570 and the mid-1.35s”

 

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