GBP/USD trades below 1.14 for the first time since 1985. Economists at Scotiabank highlight that the pair could sustain a substantial drop to the early 1985 low at 1.0520.
Minor rallies unlikely to be sustained
“The outlook for the GBP is bleak from a technical point of view – there are no obvious supports for the GBP below the market until the early 1985 low at 1.0520.”
“Trend signals are aligned bearishly for the GBP, suggesting little or no scope for counter trend corrections.”
“Minor rallies are unlikely to be sustained. Look for gains to remain capped in the low/mid 1.14s in the near-term.”