GBP/USD bullish above 1.3350 – Scotiabank
|FX Strategists at Scotiabank noted the neutral stance on Cable, although a clear break of the 1.3350 area could shift the outlook to bullish.
Key Quotes
”UK consumer confidence slid in Nov, reaching the lowest levels since the aftermath of the Brexit vote in mid 2016. UK private consumption may be vulnerable to a squeeze from higher prices amid flat wage growth. Brexit issues remain a drag on the GBP’s broader, fundamental outlook, we feel”.
“Cable has climbed away from key support in the mid 1.31s this week but the pound has met firm resistance in the low 1.33 area overnight, near the early Nov high. We had expected better resistance to GBP gains from the 40-day MA this week but a persistent bid for the pound and the broader slide in the USD leaves the GBP at risk of extending gains. Bullish on a clear move above 1.3335/45”.
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