GBP/USD: Potential for a drop back to 1.2370/1.2380 on a break under 1.2600 – Scotiabank

GBP/USD recovers its early losses but may struggle to extend, economists at Scotiabank report 1.2600 is key support Solid Sterling gains from the daily low just under 1.27 cast a positive light on near-term price action but there has been little follow through demand through the low 1.27s and broader trading patterns still lean somewhat bearish for the Pound’s outlook.