GBP/USD: Firm support should emerge on modest weakness through the upper 1.23 area – Scotiabank

GBP/USD trades a little weaker but downside potential looks limited in the short run, in the view of economists at Scotiabank.

Weakness through the mid-1.23 area could signal more downside risk in the short run

Positive price action last week suggests firm support for the GBP should emerge on modest weakness through the upper 1.23 area but trends are not well defined at the moment and weakness through the mid-1.23 area could signal more downside risk for the Pound in the short run. 

Gains above 1.2460 are needed to drive Sterling higher.