GBP/USD: Consolidation ahead of another push lower – Scotiabank

GBP remains soft. Economists at Scotiabank analyze Sterling’s outlook.

Losses may remain contained above the 1.20 level

Sterling is consolidating but price action retains a soft undertone and minor gains in the Pound since Friday’s low may simply reflect a consolidation ahead of another push lower. 

Sterling also looks heavily oversold on the longer run charts, however, so losses may remain contained above the 1.20 level. 

Short-term support is 1.2120/1.2130. Resistance is 1.2170/1.2175.

See: GBP/USD remains biased back to the recent lows near 1.2050 – ING