GBP/USD: Sterling looks soft on the charts and prone to more losses – Scotiabank

GBP/USD skids below the 1.2700 level. Economists at Scotiabank analyze the pair’s technical outlook.

A softer phase of price action is developing

Sterling looks soft on the charts and is prone to more losses. 

Weakness below major trend support – now resistance – at 1.2855 suggests a softer phase of price action is developing. 

Support is 1.2600/05 and 1.2575/80 (100-Day Moving Average at 1.2579).

See: 

• GBP/USD could drop to the 1.2580/1.2600 area – ING

• BoE: Expected downside risks for the growth and inflation outlook points to weaker GBP – Commerzbank