The GBP is firm in the session, rebounding sharply from yesterday’s heavy fall. Economists at Scotiabank analyze GBP/USD technical outlook.

Trend signals are choppy but lean GBP-bullish

Monday’s price action formed a bearish reversal signal (outside range day) so GBP gains will need to extend beyond 1.26 to better yesterday’s high in order to extend or risk dropping back again. 

Trend signals are choppy but lean GBP-bullish which suggests the Pound has a chance to rally a bit more.