GBP/USD trades in a 1.2530-1.26 consolidation zone. Economists at Scotiabank expect the pair to slide towards 1.24 on failure to rise above the 1.26 level this week.

Cable remains on a clear weakening trend

“The GBP remains on a clear weakening trend and it would take a firm break past the 1.26 figure zone to build signs of a reversal, with limited support markers between it and the 1.27 level.”

“A failure to climb back above 1.26 over the balance of the week would point to a resumption of losses that breakthrough 1.24 – which held up the GBP last Thursday – and eventually aim for the Jun 2020 low of ~1.2250.”