GBP/USD to enjoy further gains toward the mid/upper 1.22s – Scotiabank

GBP/USD retests mid-1.21s. Economists at Scotiabank expect the pair to extend its advance toward the mid/upper 1.22s.

Dip under 1.2080/75 to open up a retest of 1.1950/00

“A strong close on the session Friday (bullish outside range) and a close back above the 200-day MA (1.2014) are clearly GBP positive from a technical point of view.” 

“Spot is struggling a little to extend through the mid-1.21s, which may be an early warning that gains may not stick but the basic set-up for the Pound is positive and favours near-term gains to the mid/upper 1.22s at least.” 

“Support is 1.2075/80; weakness below here would signal a retest of 1.1950/00.”