GBP/USD is trading at a new low since January 6 and is vulnerable to more losses, according to economists at Scotiabank.
Minor rebounds are a sell
“Sterling looks technically weak and prone to more losses but the chart situation is not yet definitively bearish from a longer run point of view, with Cable still trading within its recent, broad range. The danger is clear, however; losses below 1.1845 will trigger a 1.2450 double top and signal scope for a sizeable move lower in the next 1-3 months (towards 1.12 potentially).”
“Trend signals are aligned bearishly for the GBP across short, medium and longer run oscillators.”
“Minor rebounds are a sell.”
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