Analysts at Scotiabank explained that sterling looks quite firm on the face of it and may well extend to retest the 1.3260/90 area.
Key Quotes:
“But these are “nosebleed” levels for the GBP by recent standards at least where the market has struggled to sustain gains and we note strong retracement resistance above the market still at 1.3319 (38.2% Fib of the 1.47/1.27 drop).”
“Shorter-term trend momentum looks a little more constructive for the pound but longer term price signals suggest that the 1.33 area will remain a significant block on additional gains in the longer run.”
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