GBP/USD: could be headed to 1.3715/20 bear break out point from March - Scotiabank

Analysts at Scotiabank explained that investors feel a lot of bad news is already priced into the GBP. 

Key Quotes:

"There have been no data releases and the news on Brexit remains hopeful rather than constructive."

"PM May is trying to herd a divided cabinet towards delivering on its Brexit goals and asked her colleagues to trust her to deliver in a news report over the weekend."

"Her position remains weak, however, with parliamentary leaders conceding that Brexit legislation, which was taken apart in the Lords, will not come back to the House of Commons before the autumn."

"GBP/USD short-term technicals: neutral – Sterling is firmer but essentially flat still with gains capped under 1.36, more or less the top of the range over the past week."

"The pound’s sell-off has stalled but evidence of more obvious bullish reversal is, for the moment, absent."

"A push through 1.36 should see the pound’s rally extend near-term, possibly to retest the 1.3715/20 bear break out point from Mar. However, we expect firm resistance on rallies to the 1.37 area."