GBP/USD: The only major point of note is the 1.1425 low from 2020 – Scotiabank

GBP/USD is floundering in the low 1.16s. Economists at Scotiabank expect the pair to continue its slide.

GBP to retain a weak undertone

“Short, medium and long-term trend oscillators remain aligned bearishly against the GBP, implying that GBP rebounds are liable to remain shallow (1.17/1.18 range) and short-lived.”

“There is little in terms of notable support for the GBP below the market – the 1.16 and 1.15 points provide some psychological support but the only major point of note is the 1.1425 low from 2020.” 

“Sterling is liable to retain a soft undertone at least until the new government team and its policies take shape.”