GBPUSD: Failure to hold the low 1.14 zone will point to renewed losses toward 1.12/1.13 – Scotiabank

Sterling is one of the weaker-performing majors on the session. Economists at Scotiabank expect the low 1.14 zone to cushion the GBPUSD downside.

UK political backdrop remains somewhat unsettled

“The UK political backdrop remains somewhat unsettled, with a minister from new PM Sunak’s cabinet forced to resign today. More turnover of government ministers would not surprise but the key issue for the GBP as far as Westminster goes in next week’s update on government finances.” 

“Intraday support is developing at 1.1430 which may provide some lift for the GBP to retest the mid-1.15s but failure to hold the low 1.14 zone will point to renewed losses towards 1.12/1.13.”