Cable is trading on a firm note. Nonetheless, economists at Scotiabank expect GBP/USD to turn back lower towards the daily low at 1.2065.

The broader downtrend remains intact

“With markets generally consolidating, gains through 1.2135/40 will be a stretch for the GBP and we rather look for prices to edge back towards the intraday low for spot around 1.2065.” 

“The broader downtrend in place since the start of the year remains intact which should serve to reinforce resistance in the 1.2175/00 zone.”