GBP/USD to settle into lower range between 1.23/1.25 on sustained weakness below the 1.26 zone – Scotiabank
|GBP/USD slides on weaker-than-expected PMIs. Economists at Scotiabank analyze the pair’s outlook.
The 1.2620 level is now key support
Weaker-than-expected UK data reflected a slump in services – to 48.7 in August from 51.5 in July. The flash composite index dropped to 47.9 this month, down from 50.8.
The 1.2620 level is now key support (reinforced somewhat by the 100-Day Moving Average (DMA) at 1.2636).
Sustained weakness below the 1.26 zone could shift Cable into a new, lower trading range between 1.23 and 1.25.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.