GBP/USD is off earlier high but supported on dips. Economists at Scotiabank analyze the pair’s technical outlook.

Solid support is apparent on dips to 1.2695

Cable is trading in an extended consolidation range after last week’s test and rejection of 1.2850. Solid support is apparent on dips to 1.2695, however, and the short-term charts do suggest that markets are steadily accumulating the GBP on dips below the figure. 

Consistent demand on minor dips under 1.27 is bullish from a short-term point of view at least. 

Resistance is 1.2750/55 ahead of a return to 1.28 .