GBP/USD has found firm support in the low 1.23 zone over the past 24 hours. Economists at Scotiabank analyze the pair’s technical outlook.

Intraday performance looks solid

“Steady gains so far today suggest a mild improvement in its technical tone at least.”

“Short-term trend momentum is positive but that is overshadowed by bearish-leaning signals on the longer run studies. Still, the intraday performance looks solid and regaining the mid-1.23 area (formerly support) gives the technical tone a further (short-term, at least) lift.”

“Resistance is 1.2395/00 and (stronger) at 1.2425. Gains through the latter point would be more generally constructive.”