GBP/USD's technical outlook is Neutral/bearish - Scotiabank

Analysts at Scotiabank explained that GBP/USD's technical outlook is Neutral/bearish.

Key Quotes:

"The GBP traded sharply lower yesterday and closed net lower on the day having failed to secure a break above the 40-day MA (1.3304) - a barrier that we expected to provide firm resistance to the GBP’s recent advance."

"The GBP’s tumble was significant and technically bearish as price formed a negative outside range session. Weakness under 1.3200/10 should see spot drop back to the 1.3125/00."