GBP/USD: Losses can quickly extend to the mid-1.20s – Scotiabank

GBP/USD slumps to mid-1.21s. Economists at Scotiabank note that cable could fall as low as the mid-1.20s.

Resistance aligns at the 1.22 area

“The technical picture for sterling points to losses to the 1.21 figure amid its ongoing failure to hold the 1.23 handle on the five occasions it has broken above the figure in the past week – and the quick selloffs that have followed some of these moves.” 

“Aside from the daily low of 1.2154, there are no obvious support markers until the 1.2100/10 zone and losses can quickly follow to the mid-1.20s.” 

“Resistance is the 1.22 area with the daily high at ~1.2215 and the mid-1.22s subsequently.”