GBP/USD: technical analysis points to a neutral scenario (Scotiabank)

Scotiabank believes that the GBP/USD should continue consolidating in the near term.

"We remain cautious regarding the outlook for the GBP and believe that the pound is not immune to negative risks associated with Brexit surprises.

The long-term charts suggest a bearish bias for the GBP/USD and a possible consolidation before a further rise (bullish wedge on the daily chart).

Short-term graphics are more equivocal, however, with the "cable" hovering around 100 pips around 1.3850.

We expect further consolidation in the near term."