GBP/USD: a neutral short term outlook - Scotiabank

Analysts at Scotiabank explained that sterling has a neutral short term outlook.

Key Quotes:

"The Rightmove House Price index fell 2.1% for December, data released Sunday evening revealed, following a 1.1% drop in November. UK inflation data this week will attract attention amid speculation that the BoE will have little tolerance for inflation running higher. 

We think there is little risk of any policy reaction at this stage—and certainly while the Brexit process is ongoing. 

GBP/USD short-term technicals: neutral—Cable is firmer on the day but spot is still essentially confined to the trading/consolidation range in place since October. We see support at 1.2470."