GBP/USD neutral-bearish near term – Scotiabank

In view of Chief FX Strategist at Scotiabank Shaun Osborne, Cable’s short term outlook remains neutral-bearish.

Key Quotes

“The Brexit Bill has been given the Royal ascent – it is now law – which will allow PM to pull the Brexit trigger at her leisure in the next week or so. Brexit risks suggest sterling will retain a defensive undertone near term, at least”.

“Net gains on the week – so far – for sterling suggest some technical strength might be creeping back into the market and the broader trend lower has stalled. We think downside risks remain quite significant in the near to medium term, however, and await the close of the week to asses broader risks for the GBP. Intraday, price signals look potentially soft, with weak price action developing around the overnight highs around 1.23; weakness back under 1.2245/50 may see the GBP slip lower again”.