GBP/USD drops to 1.23. The pair could extend its fall to the 1.22 level, economists at Scotiabank report.
Fiscal policy remains a potential weakness in the GBP outlook
“Intraday weakness in the GBP below support at 1.2315 leaves the Pound exposed to more weakness – unless it can quickly stabilize and strengthen.”
“After two tests of 1.2430/35 over the past week, a sustained break under 1.2315 triggers a mini-double top on the intraday chart which would imply more GBP losses to 1.22 over the next week or so.”
“Fiscal policy – and foreign investor participation in the UK Gilts market – remains a potential weakness in the GBP outlook.”
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