GBP/USD: No major chart points until March 2020 low near 1.1410 below 1.2075 – BBH

Cable remains soft below 1.22 and is set to test the May 13 low near 1.2155. Economists at BBH believe that the GBP/USD pair could nosedive as low as 1.1410.

Brexit remains in the headlines

“GBP/USD is nearing a test of the May 13 low near 1.2155. After that is the May 2020 low near 1.2075 but we continue to target the March 2020 low near 1.1410.”

“A potential trade war with its largest trading partner as the economy is already contracting is yet another reason we remain negative on sterling.”