GBP has weakened in line with the overall gain in the USD against its core European peers. However, more significant losses look technically unlikely, in the view of analyst at Scotiabank.

GBP eases but holds range

“Sterling has slipped and short-term technical signals have turned more negative but price action has not extended to a point where more significant losses look technically likely.”

“Cable is essentially holding within its recent trading range and while the Pound holds above last week’s 1.2265 low, downside risks should remain limited. A break below that point would, however, indicate growing risk of a dip to the lows 1.21s.”