GBP/USD short-term technicals look negative - Scotiabank

GBP/USD short-term technicals look negative, according to Shaun Osborne, Strategist at Scotiabank, adding that GBP is vulnerable to a slide back to a 1.22 handle.

Key Quotes

“UK industrial production data showed overall output falling -0.4% in September, weaker than the consensus call for unchanged output. While details showed that manufacturing output rose more strongly than estimates, the weaker headline report implies slower growth overall for the economy in Q3 in all likelihood.”

“GBPUSD short-term technicals: neutral/negative — short-term technical patterns look negative for the GBP; the market peaked and reversed from the mid 1.25 area early yesterday and spot retains a heavy undertone at writing, nearing yesterday’s low. We see short term retracement support at 1.2375 and feel the GBP is vulnerable to a slide back to a 1.22 handle fairly quickly on a break below here.”