Sterling has not escaped the corrective rebound in the USD. Cable could fall to the 1.2075/1.2125 range on a break under the 1.22 level, economists at Scotiabank report.
Loss of support at 1.2260 confers a soft look on the GBP outlook in the short run
“Short-term pressure on the GBP is moderating around the 1.22 line – minor pivot support on the intraday chart. Loss of support at 1.2260 (minor resistance intraday now ) confers a soft look on the GBP outlook in the short run, however.”
“Weakness below the 1.22 point will tip the balance of risks towards a deeper drop to the 1.2075/1.2125 range.”
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