GBP/USD could rebound towards 1.2140/1.2145 – Scotiabank

GBP/USD slips under 1.21. Economists at Scotiabank analyze the pair’s outlook.

Rebound shows some technical chops

Sterling’s tendency to act more like a high beta (or riskier) currency since Brexit is reflected in today’s performance where it has underperformed relative to the EUR, CHF and JPY.

The Pound is soft but, after weakening through but then recovering from below 1.2100 in late morning European trade, the hourly chart is flashing a potentially bullish reversal signal. This may herald a rebound towards 1.2140/1.2145. 

Support is 1.2055.