A low close on the week could see losses extend to 1.27 – Scotiabank

GBP/USD trades soft in the mid-1.28s. Economists at Scotiabank analyze the pair’s outlook.

A low close on the week will add to GBP headwinds

Five net down days and a sixth looking possible today leave the GBP undertone soft. A low close on the week will add to GBP headwinds. 

Trend momentum has weakened on the short-term chart and a low weekly close (likely, at this stage) would add to broader headwinds. 

Cable losses have steadied around the 1.2850 point that was resistance in June as the Pound rallied but a low close on the week could see losses extend to 1.27 trend support off the March low.