GBP/USD stance remains neutral/bearish near term – Scotiabank

Cable is expected to find resistance in the 1.4200/10 band in the short-term, noted FX Strategists at Scotiabank.

Key Quotes

“Cable is little changed on the day, despite the broadly stronger USD. GBP support stems from reports suggesting the government will outline a plan to tackle the Irish border issue. The BoE’s monthly Agent’s summary of business conditions report highlighted soft retail trends across the country but suggested labour markets were tight and modest, upward pressure on labour costs”.

“Cable found firm support below 1.41 yesterday, much as we expected, and managed to recover quite well through the overnight session. The short and medium term trend in the pound remains quite positive but short-term momentum signals have faltered, suggesting the market remains prone to softness. We continue to spot initial support at 1.4075/85, however. Resistance is 1.4200/ 10”.