GBP/USD due a reversal, noting spreads and ascending wedge? - Scotiabank

Analysts at Scotiabank explained that spreads remain soft and somewhat disconnected from the recent highs in spot, leaving GBP vulnerable to a slight adjustment. 

Key Quotes:

"Domestic risk is set to remain elevated throughout the week as we look to the release of fresh PMI’s as well as the BoE’s policy decision and Quarterly Inflation Report on Thursday.

CFTC positioning is net short GBP and risk reversals are suggestive of a slight premium for protection against GBP weakness.

GBP appears vulnerable as we note the formation of an ascending wedge over the past six weeks "