GBP/USD could face further weakness near term – Scotiabank
|In opinion of FX Strategists at Scotiabank, Cable remains poised for further weakness in the short-term horizon.
Key Quotes
“The CBI’s Business Optimism index slumped to -16 this month (from -3 in Sep, the lowest in three years, ) and manufacturing orders continued to slide (-6). Companies look for flat output over the next quarter, the worst forecast since 2015. The survey suggests caution (at best) descending over UK manufacturing amid uncertainty over the Brexit process. PM May’s statement on Brexit yesterday left many key issues unresolved but the back-bench revolt among Brexit hardliners – and some centrists – which threatens to topple her remains in check for the moment”.
“The GBP averted a test of support in the low 1.29s earlier and has found a degree of support around 1.2950 in the short term charts, suggesting a temporary low may be in for now. Broader price patterns look bearish still, however, and we expect upside potential to remain contained. We spot resistance at 1.3015/20 intraday and stronger resistance at 1.3100. We still rather think the GBP is prone to renewed softness in the medium term after failing to progress through major retracement resistance in the low 1.33s in recent weeks”.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.