GBP/USD regains 1.22. Economists at Scotiabank analyze the pair’s outlook.

Technical rebound gathers momentum

Sterling’s solid rebound from its mid-week low via a big, bullish key reversal/outside range signal has extended a little further to reach the low 1.22s.

Late day gains on Thursday through 1.2175/80 added to the GBP’s bullish credentials on the short-term charts and supported the case for some additional progress in the near term towards the 1.23 level.