GBP/USD inches higher from the 1.22 support zone. Economists at Scotiabank believe that the pair could surge above the 1.23 level.
Cable remains well-supported on dips back to the 1.22 zone
“Retests of 1.22 over the past few sessions have generated solid gains and while short-term trend dynamics are soft, they are leaning GBP-bullish. That leaves the door open for the GBP to regain 1.23 in the short run. However, the intraday chart does reveal a potential weakness – a possible Head & Shoulders top whose neckline trigger falls right on the 1.22.”
“Near-term weakness below the 1.22 region would imply GBP losses back to the 1.2075 zone in the next 1-3 days.”
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