GBP/USD: At clear risk of a return to sub-1.20 levels – Scotiabank

Sterling has been one of the weakest currencies among the majors over the past week. Economists at Scotiabank expect the GBP/USD to drop back under the 1.20 level.

GBP prone to a bit more softness 

“GBP price action last week overall pushed cable below the rising trend in place since mid-Jul and leaves spot at clear risk of a return to sub-1.20 levels.”

“Support is 1.2040 and 1.2000/05.”

“Resistance is 1.2125.”