GBP/USD to reverse its bearish trend on a break above 100-DMA and test of 1.36 – Scotiabank

Cable’s three-day positive streak has taken it to near a test of its 100-day moving average (DMA) of 1.3518. A break above here and a subsequent test of the 1.36 level is crucial to see further gains, economists at Scotiabank report.

Failure to break past the 1.35 figure zone to lead to a test of 1.3450 

“Buying pressure on the drop under 1.34 has lifted the GBP but a break above the 100-DMA at 1.3518 and then a test of 1.36 will be key to judge whether the pound may reverse its broadly bearish trend since last summer.”

“A failure to break past the 1.35 figure zone could see the GBP head to a test of support at 1.3450 followed by the 1.34 area.”

“Resistance past the figure and the 100-day MA follows at the 1.3550/65 zone and then 1.36.”