Cable corrected sharp gains from Tuesday earlier in the session. Economists at Scotiabank believe that the GBP/USD pair could see more weakness ahead.

GBP vulnerable to more downside

“Intraday patterns look a little soft but not decisively so.”

“The main problem for the GBP is that yesterday’s bounce stalled just below the 55-Day Moving Average (1.2171) which has served as something of a block on gains recently.”

“Failure to progress leaves the GBP vulnerable to more downside probing and a test of key medium-term support around 1.1925 (where the 100 and 200-DMA converge currently).”