GBP/USD fluctuates in a relatively tight channel above 1.26 on Friday. Economists at Scotiatbank believe that cable is unlikely to see a push higher towards the 1.30 level.

The 1.26 figure zone is acting as solid support

“The 1.26 figure zone is acting as solid support ahead of yesterday’s low of ~1.2550.”

“Cable gains past the mid-1.26s face limited resistance until the next big figure with the 50-day MA of ~1.2775 following.” 

“The UK macroeconomic backdrop and the global risk tone still mean a GBP return to 1.30 is unlikely.”