GBP/USD more likely to slide towards recent range lows - Westpac

According to the analysts at Westpac, GBP/USD remains contained within a broad 1.20-1.28 range and appears more likely to slide towards recent range lows.

Key Quotes

“Firmer data of late including retail sales, CPI and services sector PMI are helping pacify post-Article 50 trigger worries, for the time being. BoE’s Vlieghe however sees the consumer slowdown likely to “intensify” as subdued wage growth and a weaker pound hits budgets.”

“Hard to make a compelling case for a sustained trade above the 200 day moving average (1.2650).”

“United (or not so) Kingdom faces ongoing ructions from Scotland and N. Ireland. While the triggering of Article 50 may have cleared the air in the short term it has also ushered in deeper long term uncertainties. The EU parliament’s vote in favour of a tough negotiation stance, including that no EU trade deal can be made until Brexit is complete, extends these uncertainties.”