GBP/USD: Gains through 1.2175/85 to open up the low/mid-1.22s – Scotiabank

GBP/USD trades back to the mid-1.21 zone. A break past 1.2175/95 would clear the way towards the low/mid-1.22s, economists at Scotiabank report.

Short-term technical undertone is supportive

“A third day of gains (so far) for Cable support the impression of a clear reversal developing earlier this week around the test and rejection (via a bullish outside range reversal) of the 200-Day Moving Average.”

Intraday gains have stalled in the mid-1.21 area but the short-term technical undertone is supportive and suggests support on dips to the 1.2105/10 area intraday.”

“Spot may test 1.2175/85 shortly, with gains through here targeting the low/mid-1.22s.”