GBP/USD: downside risks extending to the 1.31 area in the next few weeks - Scotiabank

Analysts at Scotiabank explained that Sterling has managed to grind steadily higher since Tuesday’s low near 1.32 and has progressed through minor trend resistance at 1.3310.

Key Quotes:

"A high close on the week will help relieve some of the recent pressure on the GBP but the broader trend in the market remains soft and the GBP is prone to weakness while the market remains below 1.3715, we feel."

"The break under here late last month implies downside risks extending to the 1.31 area in the next few weeks."