GBP/USD points to further downside – Scotiabank

According to FX Strategists at Scotiabank, Cable’s perspective remains negative in the near term.

Key Quotes

“Cable found support below 1.21 overnight but the gradual deterioration in the overall technical position continues”.

“Loss of support in the 1.2165 area this week confers a heightened sense of bearishness on broader price risks from our point of view”.

“This suggests imminent risks of a return to the early Oct low near 1.1950 (and possibly lower)”.

“Look to fade minor GBP rallies. Trend signals suggest an intensifying bear trend developing across a range of time frames”.