Gbpusd On Path To Bullish Rally

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Gbpusd On Path To Bullish Rally

Gbp/Usd Needs To Cross 1.2710 For Bullish Rally - Scotiabank

The analysts from Scotiabank are returning with a new forecast for the GBP/USD. According to Scotiabank, the GBP/USD must cross the 1.2710 handle with sufficient momentum. Once that happens, the GBP will officially turn bullish against the greenback.

If we look at today's GBP/USD price action, the pair is up with minor gains. However, the bigger picture is that the pair is in green for the 6th session in a row.

Long-Term Trend Shows Gbp Strength

So, even if the cable experiences minor dips, it will remain supported. This means even if the GBP/USD shows some bearish action in the short term, the buyers will be waiting for the pullbacks.

The trend momentum indicator is also bullish for the GBP/USD on the intraday and the daily timeframes. This indicates that the GBP's fundamental and technical indicators are more robust than the USD's.

However, the only problem faced by the GBP/USD as of late is that it needs help crossing the barrier near 1.2700 - 1.2710. A large influx of sellers is located in this region, and even the existing positions are closed as investors fear a rapid U-turn from this resistance.

So, any big bullish moves in the GBP/USD will only happen once the 1.2710 level is cleared. A clear break of this level will mean the GBP/USD can target the resistance at 1.2750.

Beyond that, the Scotiabank analysts have also mentioned the resistance levels at the 1.2775 and then the 1.2800 handle, which is a significant resistance.

On the downside, the GBP/USD support can be seen in the region of 1.2650 - 1.2660. According to Scotiabank, a large influx of buyers is seen in this region, which increases the chances of a recovery if the pair falls to this level.

The bottom line is that the advances in GBP/USD will be limited unless the bulls conquer the 1.2700 resistance.

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