GBP/USD is on the back foot, having faced rejection at 1.2400. Economists at Scotiabank expect the pair to move higher and retest key resistance at 1.2450/60.
Bullish pennant consolidation
“Late week price action in the Pound has seen Cable move sideways within a steadily narrowing range – a bullish pennant consolidation.”
“Support is seen at 1.2335.”
“Bullish-leaning trend strength studies favour a topside break out and push on to retest key resistance at 1.2450/60 and beyond.”
See: GBP underperformance unlikely to persist – HSBC
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