GBP/USD technicals point to a neutral stance – Scotiabank

In view of FX Strategists at Scotiabank, Cable’s outlook stay neutral in the short-term horizon.

Key Quotes

“The GBP is little changed. UK data showing a further decline in London property prices (falling 2.6% in the Jan year, according to Acadata, the fastest clip since the recession) underscores the prospects for the City as Brexit looms. There are no major data releases scheduled for the UK this week at all, leaving markets prone to range trading and sudden lurches in response to headline news (Brexit, tariffs, etc.). We remain cautious on the GBP outlook and feel the pound is not free from the risk of negative, Brexit-related surprises”.

“A look at the longer run chart suggests an underlying bid for the pound and a market that may be consolidating ahead of another push higher (bull wedge pattern on the daily chart). The short-term patterns are more equivocal, however, with Cable pivoting around 100 pips either side of 1.3850. We look for more range trading near-term”.