GBP/USD to suffer substantial losses towards the 1.2850 area – Scotiabank

Cable is making new cycle lows in the mid-1.31s. Economists at Scotiabank expect the GBP/USD pair to nosedive towards the 1.2850 zone.

Initial resistance aligns at 1.32

“GBP/USD has found an intermediate floor in the mid-1.31s that are preventing a move, for now, toward a test of 1.30.”

“Cable has now crossed into oversold on the RSI and losses from here may decelerate but price action points to a continued decline to at least the next big figure; the 1.2850 zone stands as the next clear support area.” 

“Resistance is the 1.32 area followed by the mid-1.32s and ~1.3275.”