GBP/USD surged higher and closed the day above 1.2000. Economists at Scotiabank believe that the pair could extend its rally as high as the mid-1.24s.

Last week’s peak is a potential double bottom trigger

“Sterling had a very positive session overall yesterday (bullish outside range to reject the 200-Day Moving Average support). Follow-through demand puts near-term focus on the mid-1.21 zone where last week’s high and the 55-DMA converge.” 

“Last week’s peak is a potential double bottom trigger following the GBP’s two recent tests of the 1.1925/30 area. Gains through here would target a retest of the GBP’s recent peaks in the mid-1.24s at least.”