GBP/USD: Break below 1.34 to clear the way for a major fall to 1.30 – Scotiabank

GBP/USD is consolidating its losses around 1.3450. Economists at Scotiabank expect the cable to drop substantially towards the 1.30 level once below the 1.34 mark.

GBP/USD heads towards the 1.34 level

“Cable is on track to test the 1.34 mark to a new low since last December amid sharp selling since its failed push above 1.38 last week.” 

“Beyond 1.34, there are no obvious support markers for the GBP until the 1.30 zone aside from its 100 and 200-week MAs at 1.3282 and 1.3167, respectively.”

“Resistance is intermediate around 1.3450 followed by firm at 1.3500/10 and the mid-1.35s zone.”