Relatively narrow range-trading for GBP on the crosses ahead of the fiscal update – Scotiabank

Sterling is softer, in line with most of its peers, in the session. In the view of economists at Scotiabank, GBP caution is likely to prevail ahead of Autumn Statement on Thursday.

Key support is 1.1550

“Markets await Chancellor Hunt’s Autumn Statement on Thursday. Hunt faces a delicate balance of trying to shore up UK policy credibility to reassure markets and the GBP, whilst making spending cuts and revenue enhancements that do not weaken already soft support for the Conservatives even further.”

“Expect relatively narrow range-trading for the GBP on the crosses ahead of the fiscal update.”

“Cable gains look to have stalled on the short-term chart. Broader trends – bullish longer-term price signals and the break above the major bear trend in place since the start of the year – remain intact, however.”

“We spot support at 1.1625/35. Key support is 1.1550. Resistance is 1.2045 (50% Fibonacci retracement of the 2022 decline).”