GBP/USD consolidates as government tries to re-establish fiscal credibility. Economists at Scotiabank believe that the pair could regain the 1.20 area.

Firm support on dips to the low/mid-1.14s area

“We still rather think the GBP has seen the worst of the recent turmoil and restoring credibility to government finances could help the pound regain the 1.20 zone after its recovery through the 1.14 area. But the delayed fiscal update is still a long way off, leaving the GBP subject to swings in the broader USD tone in the meantime.”

“We are bullish on the broader outlook for the GBP above the 1.14 level and expect firm support on dips to the low/mid 1.14 area from here.”

“Intraday gains through 1.1610 should cue renewed GBP gains.”