GBP/USD has regained a little ground on the session after weakening back to the 1.24 area. Economists at Scotiabank analyze the pair’s technical outlook.

Gains are still confined to a short-term consolidation range

The GBP/USD pair is firmer but gains are still confined to a short-term consolidation range which may limit the Pound’s ability to rally further in the near term. 

Sustained gains through 1.2460/70 (40-Day Moving Average at 1.2467) in the near-term will confer a stronger technical tone on Cable and point towards gains extending to the mid-1.25s.