GBP/USD consolidates. Pressure on the low 1.20s may trigger more softness, in the view of economists at Scotiabank.

Cable price action may be forming a bear flag

“Cable price action has been generally consolidative.” 

“Modest gains from yesterday’s low are running into better selling pressure near 1.2070/75 and GBP's price action may be forming a bear flag – implying renewed weakness on a break under minor support at 1.2040.” 

See – GBP/USD should continue to find support in the 1.1950/2000 area – ING