Sterling gains peaked in the low 1.24 zone earlier but losses are showing signs of reversing from the mid/upper 1.23s, economists at Scotiabank report.

Firm tone persists

“Cable gains stalled – again – in the low/ mid 1.24 area. Spot losses have, however, held short-term trend support at 1.2340 and spot gains over the past couple of hours suggest that a low may be in for the GBP in the short-run, at least.” 

“Trend signals are bullish for the GBP across multiple timeframes which support the outlook for limited losses and ongoing gains.”

“A clear push through 1.2445/50 would drive gains towards 1.2750/00 in the next few months.”