Shaun Osborne, Strategist at Scotiabank, notes that they see GBP/USD consolidating ahead of another push lower, rather than rebounding at this point.
“Sterling is little changed on the day despite some positive data releases. UK GDP was unrevised in Q3, in line with market expectations. But details revealed that investment remains surprisingly strong (considering Brexit uncertainties) while imports weakened. CBI retail sales data suggested much stronger-than-expected activity in November.”
“GBPUSD short-term technicals: neutral/negative—Cable is trading modestly higher on the week but most of those gains were seen Monday and trading has been virtually flat around 1.2450 since. Short-term charts suggest a firm floor intraday at 1.2420 and pressure on daily trend resistance at 1.2435/40. We still see Cable consolidating ahead of another push lower, rather than rebounding at this point. But may not preclude GBPUSD rising towards the 1.2550/1.26 area near-term before resuming its broader decline.”