The GBP/USD pair tests retracement support just below 1.21. Economists at Scotiabank analyze Cable’s technical outlook.

Resistance is seen at 1.2115

Cable losses are probing the 38.2% retracement of the past year’s rally (at 1.2075).

Solidly bearish trend momentum suggests the strong risk of additional weakness on a clear push through support towards the 1.17/1.18 zone – congestion from earlier this year and the 50% retracement (1.1746).