GBP/USD: Likely to strengthen above 1.3100/05 to retest 1.3145/50 – Scotiabank

GBP/USD consolidates as drift from the mid-1.31 area slows. Economists at Scotiabank analyze the pair’s outlook.

A bull flag pattern appears to be developing

Price action suggests that the Pound’s drift off last week’s high may be trying to base in the upper 1.3000s now. Spot looks to be consolidating the solid rise seen last week – and through July overall.

A bull flag pattern appears to be developing on the intraday chart. 

Support is 1.3050/60. 

Resistance is 1.3100/05, with the Pound likely to strengthen above here to retest 1.3145/50.