The Pound Sterling looks oversold – Scotiabank

UK data showed government borrowing a shade lower than expectations in September (GBP16.6bn) but cumulative borrowing over the fiscal half year was above forecasts which may limit the Labour government’s room for manoeuver in next week’s budget, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

GBP continues to slip

“The Pound Sterling (GBP) edged briefly lower to a new, short-term cycle low earlier but recovered somewhat. Sterling edged to a minor new low for this move down this morning to test the 100-day MA (1.2963).”

“Like other currencies, the pound looks oversold. Unlike some of the other majors, there is a clear short-term downtrend still developing in Cable which tilts risks to more softness (low/mid-1.29s) in the short run while overhead resistance (1.3055) holds.”