GBP/USD is dithering around the 1.23 support zone. Economists at Scotiabank expect the pair to suffer losses in the near term.

Risks still seem tilted towards a drop to 1.22

“The breakdown below the 1.23 noted support point extended briefly yesterday before the market recovered, giving the sense of a ‘false break’. The market has not been eager to give the Pound a big enough lift that would suggest a recovery was in store, however.” 

“Risks still seem tilted towards a drop in the Pound to 1.22 before it can retest key resistance at 1.2450 again.”