GBP/USD to suffer further pressure on a break below 1.1350/55 – Scotiabank

The British pound remains weak. Economists at Scotiabank expect the GBP/USD to suffer significant losses on a break under 1.1350/55.

Trend signals are bearishly aligned for the GBP

“GBP/USD price action suggests more consolidation in the short run but the upward tilt to the consolidation range in place since last Friday rather implies ongoing downside risks (bear flag potential), absent any clearer signs of GBP strength.”

“Trend signals are bearishly aligned for the GBP across a range of timeframes, suggesting ongoing downside risks for the pound.”

“Support is 1.1350/55, with pressure on the GBP resuming on a break below here.” 

“Resistance is 1.1465/75.”