GBP/USD still neutral near term – Scotiabank

Cable’s outlook remains neutral in the short-term horizon, noted FX Strategists at Scotiabank, adding that the pair could struggle to regain 1.30 and above.

Key Quotes

“The GBP has slipped steadily over the past week and challenged key, short-term support at 1.2923 (the early Oct low) earlier. Short-term price action suggests the GBP may be finding a little more solid support now (minor hammer developing on the hourly chart) which may produce a modest squeeze higher”.

“We remain broadly bearish on the broader outlook for the pound and rather feel Cable may struggle to regain 1.3000/25 as shorter-term trend studies are aligning bearishly and weekly price signals are bearish. The technical odds are starting to stack up against sterling”.