Set up is negative for the pound – Scotiabank

Analysts at Scotiabank explained that intraday price action suggests the recent slippage in GBP/USD may steady near-term near 1.4150, but we expect gains to remain relatively limited and feel that the broader set-up is shaping up negatively for the GBP.

Key Quotes:

“The daily chart shows a neat bear flag formation developing since the late February bounce from 1.3860;

Cable has lost some of its recent luster by dropping back under the 40-day MA and will lose more technical ground – perhaps quickly – on a break under the bear flag base at 1.4147 currently.”

Analysts at Scotiabank explained that intraday price action suggests the recent slippage in GBP/USD may steady near-term near 1.4150, but we expect gains to remain relatively limited and feel that the broader set-up is shaping up negatively for the GBP.

(Market News Provided by FXstreet)