GBP/USD drops back after test technical resistance in the mid-1.16s. Still, economists at Scotiabank expect the pair to retain a positive toe in the next few weeks.

Broader trends are bullish above 1.14

“Price signals are not obviously bearish and losses look consolidative as markets await the next impulse.”

“Sterling is likely to trade in line with the broader USD tone for now but we still rather feel the pound’s gains this week set it on course for some additional strength in the next few weeks.” 

“Broader trends are bullish above 1.14 – now major support – and that leaves the pound with a fair bit of room to manoeuver and still retain a positive tone.”