GBP/USD firm, neutral/bullish near term – Scotiabank
Eric Theoret, FX Strategist at Scotiabank, noted Cable’s stance remains neutral/bullish in the near term.
“GBP is consolidating its recent rally following a run of seven consecutive daily gains capped by Wednesday’s 0.6% rally. The preliminary (2nd) release of Q3 GDP was in line with expectations, at 0.4% q/q. There are no major releases ahead of the November PMI’s scheduled for release in early December, and Brexit related-risks appear limited ahead of PM May’s meeting with EC President Juncker on December 4”.
“GBP is testing fresh one month highs in the mid-1.33s at levels last seen in mid-October. Trend and momentum indicators are modestly bullish and short-term MA’s are providing confirmation. GBP appears set to break through the midpoint of its range from late September, and resistance limited ahead of the 1.3400-1.3420 area”.