GBP/USD is on the back foot, having faced rejection at 1.2400. Economists at Scotiabank expect the pair to move higher and retest key resistance at 1.2450/60.

Bullish pennant consolidation

“Late week price action in the Pound has seen Cable move sideways within a steadily narrowing range – a bullish pennant consolidation.”

“Support is seen at 1.2335.” 

“Bullish-leaning trend strength studies favour a topside break out and push on to retest key resistance at 1.2450/60 and beyond.” 

See: GBP underperformance unlikely to persist – HSBC