GBP/USD rises to mid-1.34s. This move leaves the pair technical picture looking less bearish but economists at Scotiabank still expect the cable to suffer further losses towards the 1.33/32 region.

First real test of momentum is 1.3450 resistance zone

“The overall trend in the pound remains bearish, but the recovery from the break under 1.34 on Thursday leaves the shorter-term GBP picture looking a touch less negative.” 

“The first real test of momentum is 1.3450 resistance zone. Beyond the mid-figure zone, the GBP faces resistance around 1.3500 and the 100-day MA of 1.3521.”

“Support is 1.3390/400 followed by 1.3355/75. Below this area, the pound risks losses to 1.33/1.32.”