Sterling’s multiple failures to break firmly through 1.31 during yesterday’s session have left the cable trading in a narrow channel over the past two sessions. Economists at Scotiabank believe that GBP/USD could test the 1.30 level on a dip below the mid-1.30s.

Resistance past 1.3100/10 aligns at 1.1350

“A drop below the mid-1.30s leaves the GBP at clear risk of testing the 1.30 low of mid-March after which point only the next figure level stands as psychological support.”

“Resistance past 1.3100/10 is the 1.3150 area and ~1.3165.”