GBP/USD slips back from another test of 1.2850. Economists at Scotiabank analyze Cable outlook.

Yields are bullish

Yield support suggests GBP losses are unlikely to extend too far at the moment but another failure at 1.2850 will spark interest on the charts.

UK data on Tuesday are expected to reflect tight labour markets and still elevated wage growth. Firm data will help slow GBP losses below 1.28.

See – GBP/USD: Key support at 1.2590 needs to hold to avoid a major top – Scotiabank