GBP/USD has found decent support on dips over the past week but gains have been capped below 1.28. Economists at Scotiabank analyze the pair’s outlook.
GBP should remain well-supported on dips
Sterling still looks relatively ‘cheap’ in broad terms and the risk of an extended BoE policy tightening cycle remains alive. Sterling should remain well-supported on dips.
Regaining 1.2800 would be a short-term positive for the Pound at least.
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