Cable is following its peers higher. However, economists at Scotiabank expect the GBP/USD pair to test the 1.20 level.

Limited upside potential for the GBP pound

“The pound remains at risk of testing 1.20 and losses from there mounting to a new low since 2020.”

“The GBP’s sharp rejection of the 1.22 area (high 1.21s) on Thursday that then saw it slide on Friday signals limited upside potential for the GBP.”

“Resistance is ~1.2150/65 followed by the Thursday high of 1.2189 and the big figure area generally.”

“Support is 1.2085 after the big figure, followed by the mid-1.20s.”