GBP/USD is capped at key 1.2270 resistance. A break above here could clear the path for substantial gains, economists at Scotiabank report.

GBP/USD on the cusp of a potentially bullish technical break out

“Key resistance at 1.2270 stands in the way of the GBP and a possibly sharp (+4%) squeeze higher, as improbable as this might sound.”

“Cable has developed an inverse head and shoulders reversal through Jun/Jul but the neckline trigger at 70 held yesterday’s test. Progress here is, however, time sensitive and a break higher should happen sooner, rather than later, if it is to happen at all – otherwise 1.2270 becomes a wall, rather than a springboard.”