GBP/USD needs to push under 1.26 decisively to put a negative spin on price action – Scotiabank

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 GDP data suggest economic growth trends remained weak late last year, with a Q4 contraction still a 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.