GBP/USD tracks other majors higher. Economists at Scotiabank analyze the pair’s technical outlook.

Good demand on GBP dips has developed so far this week

Good demand on GBP dips has developed so far this week, putting some positive work in on the daily chart – implying a short-term low may be in at least at Monday’s low. 

Cable gains through 1.2470 (40-Day Moving Average) will add to the positive tone in the short run at least and put a return to the mid-1.25s on the radar.