The sterling pound (GBP) has dropped 0.3% against the US dollar (USD) and is being negotiated with force in response to the publication of weaker data than expected, including an unexpected contraction in the monthly GDP, a worrying decrease in industrial production and a broader commercial deficit of what is expected, the FX Strategy Heads of Scotiabank, Shaunk, report Osborne and Eric Theoret.
The upward trend of several months is being threatened
“The publications will inform the discussions of those responsible for the BOE policy before the meeting of August 7. The Central Bank will also publish new forecasts together with its next politics. The short -term rates market is already discounting significant reliefwith more than 50 basic points for the end of the year and a accumulated total of 75 basic points for next June. “
“The upward trend of several months is being threatened as the GBP/USD approaches critical medium -term support in the 50 -day mobile average (1,3497). The RSI has also fallen below 50, suggesting that the short -term momentum is beginning to lean down the low. We look for short -term support in 1,3500 and resistance above 1,3600.”
Source: Fx Street
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