The GBP/USD consolidates while the government tries to restore fiscal credibility. Scotiabank economists they believe that the pair could recover the zone of 1.20.
Firm support on dips to/below 1.1450 area
“We continue to believe that sterling has seen the worst of the recent turbulence and the restoration of credibility in public finances could help the pound to recover the 1.20 area after its recovery through the 1.14 area. But the delayed fiscal update is still a long way off, leaving sterling subject to swings in the dollar’s overall tone in the meantime.”
“We are bullish on the overall GBP outlook above the 1.14 level and expect firm support on dips to/below 1.1450 area from here.”
“Intraday gains through 1.1610 should lead to further GBP gains.”
Source: Fx Street
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