GBP/USD Analysis: In tight range between 1.2950 and 1.30
|“We remain fundamentally bearish on the GBP as we expect the Brexit process to weigh on growth and the government’s stance to compromise prospects for the services industry.”
- Scotiabank (based on PoundSterlingLive)
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Pair’s Outlook
On Thursday the British Pound weakened against the US Dollar, amid a better-than-expected reading of the US GDP. Basically, the GBP/USD currency pair has been consolidating since the beginning of the week, while holding above the 1.2950 level for more than two weeks. Consequently, a bearish development seems unlikely, but taking into account the fact that the Cable has been trading in a down-trend since the beginning of September, a rally beyond 1.30 would be difficult to achieve. Moreover, technical indicators keep suggesting the pair is to weaken further, but in this case the support line at 1.2932 should be the bottom floor. -
Traders’ Sentiment
Today 57% of traders are long the Sterling, compared to 55% yesterday. The number of purchase orders, however, slid from 51 to 44%.
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