The GBP’s crash through 1.30 on Friday is not letting up to start the week as cable heads towards a test of 1.27. Below here, the way is clear towards the 1.25 level, economists at Scotiabank report.

Trading in oversold territory could slow the cable’s decline

“There are no major support markets between the 1.27 level and the 1.25 figure aside from the Sep 2020 low of ~1.2675 and psychological support at the figure and mid-figure areas.”

“Trading in oversold territory may slow the GBP’s decline as it did in mid-March which was followed by a three cents gain roughly.”

“Resistance is 1.2765/70 followed by the 1.28 zone and the mid figure.”