GBP/USD: Loss of support around 1.2600/1.2605 should see losses extend towards the mid-1.25s – Scotiabank

GBP/USD holds above 1.26. Economists at Scotiabank analyze the pair’s outlook.

EUR/GBP soft tone extends to test 0.86

Weakness through 1.2625 ahead of the weekend will signal another run at the figure at least. 

Loss of (minor) support around 1.2600/1.2605 should see Cable losses extend towards the mid-1.25s. 

Resistance is 1.2665/1.2675.

EUR/GBP continued its sharp retreat to test 0.86, the lowest since mid-September. More GBP outperformance looks likely here after the Pound’s sloid, late November reversal against the EUR.

See – EUR/GBP: Room open to further falls – MUFG