GBP/USD could drop and test the 1.2900 area – Scotiabank

According to FX Strategists at Scotiabank, Cable stays bearish and could slip back to the 1.2900 neighbourhood in the near term.

Key Quotes

“Sterling has traded sideways over the past 24 hours around the 1.3150/70 area but retains a weak technical undertone”.

“Technical signals here are more evolved than other markets, with bear trend momentum well established on the short, medium and longer run studies and the pound soft, below longer run retracement support at 1.3184 (50% of the 2017/2018 rally and intraday resistance), which leaves the market exposed to a push down to 1.2903 (61.8% Fib)”.