Sterling is a modest under-performer on the session. Economists at Scotiabank expect the GBP/USD pair to hold above 1.21 to keep the undertone constructive.

Gains back above 1.2175 would be constructive

“Cable’s drift off the early week high just above 1.22 remains limited and could still be construed as a bullish – potentially – consolidation ahead of another push higher.” 

“Cable is well-supported in the low 1.21 area but support will have to hold to keep the undertone constructive.”

“Tuesday’s inside range sessions casts a slightly more negative look to the daily chart. Gains back above 1.2175 intraday would be constructive.”