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Cable North of 1.3200 but on low volumes

Market Analysis

GBPUSD,H1

After a few weak sessions over the last couple of days, Sterling managed to gather some support following forecast-beating trade and production data out of the UK. Cable logged a 6-day high north of 1.3200 at 1.3212 a key Daily 50.0 Fibonancci retracement level from the September high.  The main pressure on the pound comes from Brexit. The question is are the woes all priced in and can the GBP find a floor soon, or is there more uncertainty to come and more pressure for the pound? The sixth round of the EU-UK negotiations have concluded today and again, although both sides report “sincere and real progress” there is nothing substantial to report. The game of brinkmanship continues and the can has now been kicked down the road to the next meeting in December. On the USD side the failure of consensus on Tax Reform on either side on Capitol Hill weighs on the USD. With no signs of compromise soon and a close over 1.3180 today suggests there may be more upside to come.  However, volumes are low today with the main north American markets closed for Veterans Day.

 

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Stuart Cowell

Senior Market Analyst

HotForex

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