The soft undertone persists – Scotiabank

The British pound (GBP) is little changed today, notes Shaun Osborne, chief FX strategist at Scotiabank.

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 revised lower to 0%. The survey reflects surveyors seeing higher prices minus those reporting falls and supports the outlook for further consolidation in the UK property market as UK interest rates fall.”

“GBP remains bearish against the USD, but Cable remains within the 1.3060/1.3100 trading range it has held since the start of the week. The underlying trends remain negative though and a test of support at 1.30 remains a risk. Weakness below 1.30 on a sustained basis would increase the odds of a deeper drop back to 1.27/1.28.”