GBP/USD: rallies to struggle - Scotiabank

Analysts at Scotiabank argued that GBP/USD's short-term technicals are neutral/bearish.

Key Quotes:

"Sterling retains a bearish technical undertone.

Cable tested the 1.22 level twice around New Year and while the market has bounced somewhat from the low, the rebound only becomes materially important if it can extend to and through the intervening high at 1.2385 to trigger a minor double bottom reversal.

At this point, with short, medium and longer-term trend momentum signals aligned bearishly, we think the GBP will struggle to rally and that minor GBP/USD gains remain a sell."