GBP/USD: Sub-1.20 dips likely to remain well supported – Scotiabank

GBP/USD stays at around 1.2150. Economists at Scotiabank expect the pair to hold above the 1.20 level.

More sideways range trade in the near term

“Cable is holding in about the middle of the past week’s range between support at 1.2090/00 and resistance at 1.2240/50.”

“Trend signals are mixed and weak across the shorter-term studies, suggesting more sideways range trade in the near term.”

“Broader trends suggest some modest downside risk as spot corrects the sharp rise from the Sep low but sub-1.20 dips are likely to remain well supported.”