The GBP/USD has plummeted to 1.15. Scotiabank economists they expect the pair to remain under significant downward pressure.
Price action is weak and unforgiving
Against the gloomy domestic backdrop, defined by rising energy costs and the cost-of-living crisis weighing on economic activity and prospects, further volatility in equity markets can only mean further pressure. on the GBP broadly.”
“We are trading close to our year-end forecast of 1.15 and there are no clear reasons at this point to expect a significant improvement in the outlook.”
“Price action is weak and unrelenting; trend oscillators line up sterling bearish across short, medium and long-term IMDs, and there is little in terms of clear support for sterling ahead of the bottom.” from the 2020 peak at 1.1415.”
Source: Fx Street