GBP/USD neutral/bearish near-term – Scotiabank

Chief FX Strategist at Scotiabank Shaun Osborne reiterated the negative view on the Sterling in the short term.

Key Quotes

“Sterling support in the mid 1.21 area held up well yesterday – better than we expected – and gains through short-term trend resistance suggest some scope (potentially) for the GBP rebound to extend in the near term”.

“We remain broadly bearish on the GBP outlook and expect short-term gains to give way to more losses in the longer run”.

“Some of the weaker shorts are getting squeezed out, which may be healthy for the bear trend’s sustainability, but we prefer to look at modest GBP gains – like these – as a selling opportunity”.