Short-term GBP trading patterns are leaning bullish. Cable may push higher in the short run, analysts at Scotiabank report.

Near-term trends driven by broader USD tone and expectations into March BoE decision

“Sterling may be responding to signals that the UK is very close to tying up a post-Brexit trading arrangement with the EU. A deal would be a longer-term positive for the Pound but may not alter near-term dynamics to any significant extent beyond giving the GBP a modest, psychological boost.”

“Near-term trends will be driven by the broader USD tone as well as market expectations running into the Mar 23rd BoE decision (and, to some extent, the March 15th budget announcement).” 

“Positive, short-term price signals around important, longer-term support levels warrant attention and sets the GBP up for more short-term gains to 1.2050.”

“Key – bull trigger resistance –  lies at 1.2150.”