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GBP/USD: Soft undertone persists – Scotiabank

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The Pound Sterling (GBP) is little changed on the day, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

GBP holds consolidation range

“The RICS House Price Balance index turned positive in September (11%) for the first time in two years after a marginal gain in August was revied lower to 0%. The survey reflects real estate surveyors seeing higher prices minus those reporting declines and supports the outlook for a further strengthening in the UK housing market as UK interest rates ease.”

“The GBP retains a soft undertone against the USD but Cable is still holding in the 1.3060/1.3100 trading range that it has held since the start of the week. Underlying trends remain negative though and a test of 1.30 support remains a risk. Weakness below 1.30 on a sustained basis would increase chances of a deeper drop back to 1.27/1.28.”



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