GBP/USD is trading modestly higher. However, net losses on the week leave the pair prone to more weakness, economists at Scotiabank report.

Intraday gains back through 1.2225 may provide some short-term relief

“Net losses on the week (so far) for the GBP leaves Cable looking vulnerable to more corrective pressure to the downside.”

“Support is 1.2100/05.” 

“Intraday gains back through 1.2225 may provide some short-term relief but we expect better selling pressure to emerge near 1.2350.”

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