GBP/USD to suffer further weakness in the coming day on a dip below 1.31 – Scotiabank

GBP/USD holds unchanged in narrow trading. Economists at Scotiabank expect cable to move downward as there is little room to rebuild the Bank of England’s (BoE) expectations.

Break under 1.31 faces limited support until 1.3050/60

“With a quiet data and events calendar ahead meaning that there is little to rebuild BoE expectations on next week, we may see further GBP weakness in the coming day.”

“A resumption of bearish pressure that sees the GBP break under the 1.31 zone faces limited support until 1.3050/60, the Tuesday lows.”

“Resistance past yesterday’s peak of ~1.3180 is the 1.32 figure area.”