GBP/USD: market is reluctant to extend the rally beyond 1.3225 at the moment - Scotiabank

Analysts at Scotiabank argued that sterling retains a constructive look on the charts after Friday’s sharp rebound from the 1.3050 area (weekly “hammer” candle).

Key Quotes:

"The market is reluctant to extend the rally at the moment."

"Short-term resistance in the form of minor congestions around 1.3225 is hampering gains after the GBP stretched above minor trend resistance in the upper 1.31 area yesterday."

"We still think the GBP might be able to reach the low/mid 1.33 area near-term but we also note that the broader (daily, weekly) picture remains constrained potentially by still bearishly-aligned trend signals."