GBP/USD is climbing back from sub-1.25 levels yesterday to trade as high as the mid-figure zone. Still, economists at Scotiabank expect cable to struggle to post further gains.

The pound remains caught in a relatively broad consolidation band

“The pound remains caught in a relatively broad consolidation band while showing limited signs of a notable reversal of its steep losses over the past eight sessions.”

“With yesterday’s low and the recent low of 1.2412, the GBP has formed a minor upward trend but the intraday price action shows a more neutral picture.”

“Support is the 1.25 area and yesterday’s low of 1.2474 followed by the mid-figure and 1.2412.”

“Resistance is 1.2555 (intraday high) followed by the 1.26 figure zone.”