GBP/USD has the 1.21 area in its crosshairs – Scotiabank

GBP/USD pushes higher as momentum remains positive. Economists at Scotiabank believe that Cable could test the 1.21 in the near-term.

Short-term technical patterns remain GBP-positive

“Short-term technical patterns remain GBP-positive; Cable is edging out of the short-term consolidation pattern (bull wedge) than has formed over the past week, putting a test of the 1.21 zone (at least) on the near-term radar.”

“Intraday gains still face some tough resistance points – 1.1960 high tested twice last week and the 1.2025/30 peak from Nov 15th.”

“Support is (firm) at 1.1870/75 now.”