GBP/USD edges modestly lower but the undertone remains positive, economists at Scotiabank report.

Price action looks consolidative ahead of another push higher

“Cable has drifted a little from yesterday’s late session high of 1.2285 but losses have been relatively limited and price action looks consolidative ahead of another push higher.”

Spot gains through the 55-Day Moving Average (1.2139) and developing bullish trend momentum on the intraday and daily studies suggest scope for more GBP gains towards the 1.25 area in the short run on a break above 1.23.” 

“Support on dips to the mid/upper 1.21 area should be firm.”