GBP/USD (current price: 1.3018)
The Pound was pushed sharply lower on Friday, as investors digested Thursday’s BOE statement, and as the positive U.S. releases triggered hawkish speculation regarding the USD and the Federal Reserve. The diverging policies of the two central banks might lead to further downside in the pair, although the mostly stable economic indicators still support the Pound. Cable still trades close to the all-important 1.30 level, despite the encouraging rally in early September.
Our assessment: Cable is still trading in a short-term downtrend since hitting the 1.3450 level two weeks ago as the 1.30 level might remain in the focus of traders, amid the important central bank decisions.
