GBP/USD to retest the 1.20/1.21 area on weakness below 1.22 – Scotiabank

Sterling is finding some support on dips to the 1.22 area against the USD for now but appears set for a weak close on the week against the EUR, economists at Scotiabank.

EUR/GBP advance may extend

Steady losses through the course of the week have pushed Cable back to near last Friday’s low, just under 1.22. Short-term trends look soft and losses over the week suggest the soft tone may extend. The 1.22 point may be a short-term pivot, with weakness below here pointing to the risk of losses extending to retest the 1.20/1.21 area.

EUR/GBP’s high close on the week should solidify the break out from the recent trading range and target additional gains in the weeks ahead towards 0.89.