GBP/USD slips back after late week rebound stalls. Economists at Scotiabank analyze the pair’s outlook.
Bearish momentum is strong
The GBP recovery on Thursday stalled badly on Friday and a weak close to the session left a bearish look on the short-term chart. Losses are extending again today.
The GBP looks oversold but bearish momentum is strong and a retest of the 1.20/1.21 area looks likely.
Resistance is 1.2220/1.2230.
See – EUR/GBP: A 0.8600-0.8700 range may be the story for the majority of October – ING