GBP underperforms after mixed GDP data for November. Economists at Scotiabank analyze Cable’s outlook.
Intraday support is 1.2690/1.2700
UK November GDP rose a stronger than expected 0.3% MoM but fell slightly more than forecast in the 3M/3M comparison (-0.2%). November’s GDP data suggests that economic growth trends have been weak since late last year, with Q4 contraction still at risk.
Sterling is softer on the session but the technical picture for Cable remains a little more nuanced than elsewhere.
Price signals on the daily and weekly charts are more neutral, with spot holding a 1.26/1.2850 range over the turn of the year. Spot needs to push under 1.26 decisively to put a negative spin on price action.
Intraday support is 1.2690/1.2700.
