In the view of economists at Scotiabank, the GBP/USD pair is set to move back lower and test the 1.22 area.
Losses through 1.22 to trigger a more serious correction
“Short-term price action suggests some scope for a USD rebound against the GBP.
“Intraday price signals reflect a bearish development in the form of a bearish ‘evening star’-like pattern. Trend momentum signals are leaning strongly GBP-bullish at present, however, which suggests the Pound should remain well-supported on dips. But Cable could dip back to the low 1.22 zone intraday.”
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