GBP/USD holds support in mid-1.23 zone. Economists at Scotiabank analyze the pair’s technical outlook.

Resistance stands at 1.2450

“The technical damage to the Pound thus far is limited.” 

“Cable is consolidating yesterday’s gains rather than reversing them at this point and the early week break above short-term trend resistance (now support) at 1.2355 is just about holding. Short-term support extends to the 1.2335 level intraday but while resistance stands at 1.2450.” 

“Weakness through 1.2335 leaves 1.23 exposed and will bolster the potential for Sterling to drop back to the 1.21 area.”