GBP/USD will come under more pressure if it breaks below 1.1350/55 – Scotiabank

The British pound remains weak. Scotiabank economists expect the GBP/USD take significant losses if it breaks below 1.1350/55.

Trend signals are bearish for the GBP

“GBP/USD price action suggests further consolidation in the near term, but the upward tilt of the consolidation range in place since last Friday rather implies continued downside risks (bearish flag potential), in the absence of Clearer signs of GBP strength.”

“Trend signals are aligned to the downside for the British pound over a range of timeframes, suggesting continued downside risks for the pound.”

“Support lies at 1.1350/55, and pressure on the British pound will resume if it breaks below this level.”

“Resistance is at 1.1465/75.”

Source: Fx Street

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