GBP/USD: bearish bias? - Scotiabank

Analysts at Scotiabank explained that cable looks somewhat heavy on the day as UK politics overshadows the pound’s advances made last week on the back of a hawkish-sounding BoE. 

Key Quotes:

"Foreign Sec. Johnson’s push to promote his “glorious” vision of a post-Brexit UK in a press article last week appeared to clash with current government plans and could be seen as a challenge to PM May’s leadership. 

Note that the prime minister has a busy few days ahead—visiting Canada for trade talks today and speaking in Florence on Friday on Brexit."

"GBP/USD short-term technicals: Neutral/bearish—short term trends are moderating after the GBP’s advance last week."

"Early selling pressure in European trade has knocked the GBP well off a marginal new high for the move up and set up a potential short-term reversal signal intraday (outside range on the 6-hour chart)."