GBP/USD well supported around 1.3050/70 – Westpac

Strategists at Westpac have noted Cable’s decent support in the 1.3050/70 band for the time being.

Key Quotes

“Monetary policy (4th August MPC) will be the key driver. Post Brexit data is critical, as evidenced by soft surveys, causing MPC's Weale to call for imminent easing”.

“A host of normally second tier but more timely confidence and activity data (CBI Retail Sales, Nationwide House Prices, GfK Consumer Confidence, final Markit PMI's, BRC Shop Prices and car registration) will outshine 2Q GDP. Any data softness will weaken GBP whilst rebounds or position squeezes are likely to be short-lived”.

“Momentum flattening and 1.3050/70 level holding well. Will be watching monthly close for further direction”.