Cautiousness prevails around GBP/USD – Scotiabank

Chief FX Strategist at Scotiabank Shaun Osborne remains cautious on the outlook for Cable.

Key Quotes

“GBPUSD has popped higher as North American trade gets underway and, after yesterday’s early ~150 pip sell-off fully reversed later in the session, markets will likely remain cautious about leaning too hard on the downside in the near term”.

“We think broader technical signals are negative for GBPUSD but yesterday’s rebound leaves a potential “hammer” low/reversal signal on the daily chart which may see more upside movement in the next day or so. Above 1.4165/70 would support the case for near-term gains”.