GBP/USD: a busy contender, headed to 1.2000? - Scotiabank

Analysts at Scotiabank explained that sterling eased to the low 1.21 area in Asian trade, reflecting stop loss selling and thin trading conditions only to reverse violently to reach the mid 1.22 area through early London trade.

Key Quotes:

" .... only to reverse violently  to reach the mid 1.22 area through early London trade on a combination of positive headlines which arguably have little, if any real implications for the GBP in the near-term (The Times of London’s “shadow MPC” panel suggested that rates may need to rise soon while a poll suggested a majority of Scottish voters want to remain in the UK which douses longer run Scottish referendum risks somewhat, perhaps). 

UK data releases were mixed – unemployment fell but average weekly earnings, which the BoE has highlighted as a policy trigger, dropped to +2.2%, from +2.4%. Sterling eased back under 1.22 on the data report and we think the pound remains vulnerable to a 1.20 test in the near to medium term."