Investors may be taking a cautious approach on the GBP ahead of BoE Governor Bailey’s comments today. But the broader uptrend in Cable remains intact, economists at Scotiabank report.

Price action still looks basically consolidative

“Bailey’s (recent) public comments have cautioned investors against making any assumptions about the policy rate outlook, however, and he may take the same, neutral approach today if the issue comes up.”

“Sterling has lost a bit of momentum but price action still looks basically consolidative after the GBP’s early April peak around 1.2525.”

“The broader uptrend in spot remains intact and longer-term momentum studies are bullish. The intraday patterns are more neutral, with the GBP capped by resistance at 1.2455 (bullish above here).”

“Support is 1.2390/00.”