GBP/USD has staged a powerful rebound from the all-time low reached in late September at 1.0350. Have we seen the low? Economists at Scotiabank note that headwinds for the pound remain strong.

GBP/USD may regain 1.17/1.18 in the near-term

“The rebound in the pound may extend in the short run but potential for longer run gains may be limited until political, economic and fiscal risks are clearer.”

“Cable may regain 1.17/1.18 in the near term but gains beyond that will likely hinge on the broader USD trend.”