GBP/USD: bearish to 1.2400, watching Westminster attack developments - Scotiabank

Analysts at Scotiabank noted the risks outside of the recent terror attack at Westminster.

GBP/JPY: recovers from Westminster attack lows

Key Quotes:

"Brexit risks and the risk of rising prices dampening consumer demand are two factors that appear to have helped check the GBP’s advance beyond the 1.25 area today."

"Reports suggest that Brexit risks and issues are “beginning to bite” UK industry while and BoE study and a report from IHS Markit both highlighted the potential for rising inflation related to the GBP’s decline to crimp consumer demand."

"GBP/USD short-term technicals: neutral/bearish – Cable looks to have stalled a bit more obviously around 1.25. Intraday patterns look bearish via an outside range reversal on the 6-hour chart."

"While Cable has made good progress this week overall so far, we think near-term risks are tilting lower again towards a retest of the low 1.24 area."