GBP Trading Outlook
The Sterling (GBP) rallied in Europe on the back of upgrades to Q3 GDP to 0.6% vs. 0.5% previously. Resistance was found at 1.5770 and reversed back to opening levels near 1.5680. The outlook is mixed but improving as risk aversion dies down. We are still quite low on GBP/USD historically as the Pound has underperformed in the last few years due to a weak UK economy and QE from the bank of England.
The Sterling (GBP) fell in the US session but at a slower pace than the Euro which pushed EUR/GBP to fresh lows near 08300. The outlook on the cross is still bearish and threatens to slip back further towards 0.8000. EUR/GBP has spent most of the past few decades below 0.8000. The MPC minutes were 0-9-0 as expected but they did discuss the potential for more QE next year. Looking ahead, Q3 GDP forecast at 0.5%.
The Sterling (GBP) outperformed in a very positive trading session breaking to test 1.5700 before consolidating at 1.5660. EUR/GBP fell even further and was an example of how strong the Pound move was given the positive Euro news. December CBI Distributive Trades surged to 9 vs. -19 previously a seven month high. Looking ahead, MPC minutes from December meeting forecast at 0-9-0.
The Sterling (GBP) like the Euro the GBP/USD was very contained with risk aversion in Asia reversed in Europe. EUR/GPB is pivoting the 0.8400 waiting for the next headline out of the Eurozone. December House Prices dropped -2.7% m/m. Looking ahead, December Distributive Trades forecast at -13 vs. -19 previously.
The Sterling (GBP) kept to a 50 pip trading range for a very stable trading day. EUR/GBP selling is continuing to support with the important cross now broken out of multi month range to the downside. GBP/USD will track the EUR/USD broadly however and the potential for more downside is still very evident.
Go to The Sterling (GBP) Archive





