Look to fade GBP/USD rallies - Scotiabank

In respect of GBP/USD, analysts at Scotiabank noted the current technical picture.

Key Quotes:

"The short-term downside risks highlighted Friday (minor Head & Shoulders top) delivered some softness in the GBP through the close of the week but the market has steadied and improved modestly through late morning London trading today. 

If the bearish formation noted last week still has any traction in the markets (there is no reason why it should not), the rebound in the GBP should stall at or near 1.2410/15 in the next day or so before the downward movement resumes. Look to fade GBP rallies."