UK This fall GDP information disappoints however does not provide something new to the image
If you’d like a brief abstract, simply do not go in search of the pound to take a nosedive. Very similar to the BOE final week, the disappointing information right here is all tied to 1 factor: Brexit uncertainty.
In that lieu, the This fall GDP report right here provides nothing new to merchants because it does not change something shifting ahead. The economic system is taking a protracted hit because of the unsure path that Brexit is taking and there is nothing extra that merchants can react upon aside from that.
On the finish of the day, it is nonetheless all about how Brexit progresses from right here.
Cable is at the moment holding on via bids across the 1.2900 deal with with additional help then seen nearer to 1.2880 (100-day MA @ 1.2888 additionally). I’d count on these ranges to carry on for now however be cautious that the backdrop stays that sellers are in near-term management (value trades underneath each hourly shifting averages) and that we’re nonetheless nowhere close to heading to any sure Brexit consequence.
As talked about earlier, the impression of the latter will proceed to weigh on the pound the longer this entire Brexit ordeal drags on. Therefore, the disappointing This fall GDP figures right here may assist spark additional promoting however do not count on that to be a fast jolt decrease within the pound. If anything, I can solely see such a transfer being a gradual and regular grind to the draw back, till Brexit turns into extra clear.
However child steps. Proper now, let’s examine if patrons can maintain on to the 1.2900 deal with. Threat to the upside stays the 100-hour MA (purple line) @ 1.2947.