GBP/USD: There is little in terms of clear support ahead of the 2020 spike low at 1.1415 – Scotiabank

GBP/USD has nosedived to 1.15. Economists at Scotiabank expect the pair to remain under significant downside pressure.

Price action is weak and unrelenting

“Against the gloomy domestic context, defined by higher energy costs and the cost-of-living crisis that is bearing down on activity and the economic outlook, more equity market volatility can only mean more pressure on the GBP in a broad sense.”

“We are trading close to our year-end forecast of 1.15 and there are no clear reasons at this point to expect a significant improvement in the outlook.” 

“Price action is weak and unrelenting; trend oscillators are aligned bearishly for the GBP across short, medium and long run DMIs and there is little in terms of clear support for the pound ahead of the 2020 spike low at 1.1415.”