GBP/USD: Losses could extend towards 1.20/1.21 in the next few weeks – Scotiabank

Cable’s push higher stalled around the 1.2450 mark. Economists at Scotiabank analyze the GBP/USD outlook.

Strength through 1.2550 resistance is needed to cue up more gains

Short and medium-term trend dynamics are GBP-bearish and loss of support in the mid and upper 1.24s this week points to GBP losses extending towards 1.20/1.21 in the next few weeks. 

Cable gains back through the 1.2475 resistance will stabilize trends in the short run. GBP strength through 1.2550 resistance is needed to cue up more gains.