GBP/USD risks a potential drop below 1.3000 – Scotiabank
|Chief FX Strategist at Scotiabank Shaun Osborne believes Cable could slip back below the critical 1.3000 handle in the not-so-far future.
Key Quotes
“Sterling was doing OK on the day until the EU’s head Brexit negotiator Barnier termed discussions with the UK “deadlocked” on the issue of the cost of the “divorce” to the UK and suggested that the risk of a “no deal” outcome – one policy option the UK government is supposedly contemplating – would not be good. Brexit concerns may continue weigh on the GBP near-term as political under-currents in the UK remain volatile. Sterling softness may moderate somewhat later in the session if BoE economist Haldane repeats his hawkish perspective on rate policy, however”.
“Cable looked soft in overnight trade and the selling extended sharply in early North American trade through the upper 1.31 area where the 40-day MA currently resides (1.3180). Price action looks soft on the charts now, with the GBP firmly rejecting gains to the mid-1.32s (assuming a low close on the session today, the daily chart will form a bearish outside range signal), suggesting a test of key weekly support just under 1.30 may follow”.
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.