GBP/USD: Price action looks soft – Scotiabank

GBP/USD pressures support below 1.21. Economists at Scotiabank analyze the pair’s outlook.

CBI survey reflects weak retail backdrop

The CBI’s Distributive Trades Surveys for October reflected a sharp deterioration in retail activity this month. Retailers’ prospects look soft ahead of year-end. 

Sterling looks oversold on the basis of the intraday oscillator studies and it has found steady support on dips under 1.21 since the start of the month. But price action looks soft and a push to the low 1.20s appears to be the main, short-term risk for Cable. 

Resistance is 1.2120 and 1.2155.