Analysts at Scotiabank have a bearish outlook for sterling.
“The GBP’s position has deteriorated sharply in the past few weeks, with market topping out above 1.43 for a second time this year, losing key supports around the 1.40 level along the way to a retest of the early Mar low at 1.3715.”
“After successive tests of 1.43+, we see this point as a major breakdown risk for Cable, implying downside potential for some 600 ticks, especially as the low 1.37 area also represents the base of trend support from the late 2017 low. Sterling looks at risk of a significant tumble below 1.37.”
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