Scotiabank Gbp To Remain Soft

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Scotiabank Gbp To Remain Soft

Gbp To Hold A Soft Undertone, According To Scotiabank

According to the experts at Scotiabank, the GBP is expected to remain weka against the G10 counterparts. As of now, the GBP is in a downtrend and that weakness will likely stay in the near future.

quick look at the UK bonds shows that it is underperforming. On the other hand, the 10Y bond yields (UK) are just a little higher than the peer market gains. Amidst all of this, the fiscal plan by the UK government is also at risk due to the rise in the UK bond yields.

The 2022 Market Rout Is Unlikely To Happen

Despite all of this, the Scotiabank experts believe that the market route from 2022 will not happen in 2025. At least, that's what it appears based on the current economic data.

For now, the GBP/USD is trading inside an established range on the D1 chart. This is a sign that both parties (bulls & bears) are relenting to take a definite position. In the short term, this is a sign of weakness for the GBP against the USD.

As for the bigger picture, it is also GBP bearish and it can be confirmed in the Oscillators. The oscillator indicators in GBP charts remain bearish across short, medium, and the long-term timeframes.

Looking ahead, the GBP gains will be very hard to come and more hard to sustain. On the contrary, the losses in the GBP will be easier and the path of least resistance for the market forces.

The resistance for the GBP/USD is seen around 1.2350 and 1.2360. Both of these are solid levels and can easily hold any GBP advance.

On the other hand, the support for the GBP/USD is seen around 1.2240 and 1.2250. Once again, these are strong levels where a lot of GBP bulls are lurking around.

The overall picture for the GBP is negative, in the short and the long term. Given this, it makes sense why the investors are hesistant to go ahead with their buy orders.

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