GBP/USD bounces off a test of 1.23 but the outlook remains negative. Economists at Scotiabank expect cable losses below 1.23 to extend as low as the May 2020 low of 1.2076.

1.2376 stands as resistance ahead of the figure area

“The 1.23 area provided support while gains peaked at 1.2376 that stands as resistance ahead of the figure area.”

“Losses below 1.23, which look to be in store given the GBP’s bearish trajectory, may find support at yesterday’s low of 1.2261.”

“The mid-figure area is the only noteworthy support point on the charts until 1.2076 (May 2020 low).”