GBP/USD: Gains through 1.2206 should signal potential for a bit more pickup – Scotiabank

GBP is firmer against the generally weaker USD. Economists at Scotiabank analyze Cable’s outlook.

Firm demand for the Pound on weakness to or a little below 1.21

Sterling price action reflects firm demand for the Pound on weakness to or a little below 1.21 still but gains have been limited to the 1.22 area, near the early week high for Cable. 

Intraday trend momentum is bullish but the daily DMI reading is neutral, at best. 

GBP gains are being held back on the daily chart by trend resistance off the July high. Gains through 1.2206 should signal potential for a bit more pickup in Cable at least.