GBP/USD has regained the 1.2000 level. A break past 1.2075 is needed to open up further gains, economists at Scotiabank report.

Economic challenges for the UK remain significant

“Longer run economic challenges for the UK remain significant but the still relatively weak GBP may be able to ride a little higher on a soft/ softening USD in the near-term.” 

“The broader trend remains higher, however, and the Pound retains some decent underlying bull momentum which should mean decent support on weakness to the low/mid 1.19s.”

“Gains through 1.2075 are needed to lift the GBP tone more obviously in the near-term, however, and that may be a stretch today.”