GBP/USD has gained a solid 1.5% over the course of the week. A move above 1.2295 would trigger another leg higher, economists at Scotiabank report. 

Momentum favours more gains

“The pause (a bull flag pattern) in the GBP rally should shortly give way to further gains on a spot move through the consolidation ceiling at 1.2295.”

“Support is 1.2225.”

“Trend signals are bullish on the shorter-term (intraday, daily) DMIs and tilting bullish on the weekly study.” 

“Bullish oscillators should limit GBP losses in the short term and least and leave the GBP well-supported on minor dips – which remain a buy from a technical point of view.”