GBP/USD to extend its losses towards 1.55 and possibly the 2013 low around 1.52 – Scotiabank

GBP/CAD has dropped below support near 1.58. More softness lies ahead, economists at Scotiabank report.

Additional weakness in GBP/CAD in the near-to-medium term

“GBP/CAD retains a weak and vulnerable undertone, with the cross trading below the base of the May consolidation range at 1.5790.” 

“The GBP has edged to a minor new long-term cycle low, below the 2017 low, at 1.5720 which points to additional weakness in the cross in the near-to-medium term.”

“Weekly price signals are bearish while short, medium and long-term trend momentum signals are aligned bearishly against the GBP at this point. This will limit the GBP’s ability to recover (to near 1.58 at most) and support the outlook for more GBP losses towards 1.55 and possibly the 2013 low around 1.52.”