GBP slips ahead of UK jobs and wages data on Tuesday – Scotiabank

The weaker pound reflects the general shift in favor of the USD since Friday’s US data reports, notes Shaun Osborne, chief FX strategist at Scotiabank.

The dynamics of the broader trends remain positive for the GBP

“No UK data was released today and markets are focused on Tuesday’s wages and employment data. Weak wage growth may push the pound further lower.”

“Weak price action and a negative daily price signal on Friday also suggest short-term downside risks for GBP.”

“Broader underlying trend dynamics remain positive for GBP as well, suggesting that the downside potential for Cable is limited, at least for now. The support is 1.3035. Resistance is at 1.3135/40 intraday.”