GBP/USD to extend its rally towards 1.20 on a break above 1.1605/20 – Scotiabank

Sterling is one of the better G10 currency performers on the day. Economists at Scotiabank expect the GBP/USD to return to the 1.20 area on a break past the 1.1605/20 zone.

Breaking and holding above 1.14 is a bullish medium-term signal

“Cable breaking and holding above 1.14 is a bullish medium-term signal for the pound.” 

“We expect firm support on dips to the low 1.14s/high 1.13s from here.”

“GBP gains are stalling in the 1.16 zone today, however, extending gains through the 1.1605/10 zone targets a return to the 1.20 area for cable.”