Cable gains extended to near 1.13 earlier before losing close to a cent. So long as 1.12 holds, the pair could enjoy further gains to the 1.14 area, economists at Scotiabank report.

GBP does look very cheap from a long-run perspective

“Holding the 1.12 area would be a technical plus and point to further, corrective gains to the 1.14+ zone.”

“The sharp bounce from last week’s extreme low might indicate that the worst is over for the GBP but additional gains on a weekly basis are needed to instill more confidence in the still quite uncertain outlook. The GBP does look very cheap from a long-run perspective, however.”