GBP/USD: still bearish and target below 1.2000 in next weeks - Scotiabank

Analysts at Scotiabank explained that the political considerations remain paramount as the UK government prepares to formally declare its departure from the EU. 

Key Quotes:

"Press reports suggest Scottish leaders are eyeing a 2018 time slot for a second independence referendum."

"We think the run in and immediate aftermath of Brexit perhaps hold the highest risk for the GBP in the near-to-medium term and continue to look for a retest of (sub) 1.20 levels in the next few weeks."

"UK house prices were unchanged in Feb, according to the RICS survey."

"The broader downtrend remains well-developed on the short, medium and longer run charts. GBP bears may have an opportunity to sell Cable again in the low/mid 1.22s in the next few days"