GBP/USD may close bullishly on the week – Scotiabank

GBP/USD recovers all of this week’s losses. Economists at Scotiabank analyze the pair’s outlook.

Correction risks are strengthening

Solid gains for the GBP through late week price action have taken Cable back to the opening levels of the week. 

The GBP sell-off looks oversold as well and correction risks are strengthening, based on a potentially bullish close on the week. Corrective gains may extend to 1.2350 in the short run. 

Support is 1.2225.

See: There are no real UK-specific drivers that would justify a sustained GBP outperformance – ING