Though economic indicators are coming in that favor a stronger GBP (strong CPI quarterly and moderately positive numbers for the GDP, we are put on pause before we know for sure if the BOE will Cut interest rates or not as they announced in September. Furthermore, the BOE is taking a wait and see approach to the forthcoming news and how they compare to their august targeted projections. In the meantime, the sentiment of the GBP results in a weak valuation, primarily because market will perceive a weaker value of the Pound. I am overall Bearish on the GBP. Primarily, because of the Uncertainty from Brexit, and Carney spoke out about the possible negative lack of growth and the positive effects on inflation the Brexit would have. In other words, a bank rate cut from the BOE may or may not be warranted this year. Notice how the positive news from (CPI and GDP) failed to make a significant change in the pound’s short term trends alone, the pounds current 1-hour change of trend is systemic, and mostly due to a waning USD on most USD currency pairs. That being said, a long trade may be attempted from a 1 hour fib retracement to the 138% extension target.

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