Economists at TD Securities expect the GBP/USD pair to continue its downfall. Although the Bank of England (BoE) could offer some support, cable is set to break under 1.20 in the near-term.

GBP vulnerable on the crosses

“The near-term GBP trajectory is biased to the downside, even though it maintains a pretty heft discount.”

“The BoE plus fiscal support may help to put a floor in cable but not before a near-term break below 1.20. Still, BoE pricing seems too aggressive relative to our forecast, leaving GBP vulnerable on the crosses.”