GBPUSD set to test the August 26 high near 1.19 – BBH

GBPUSD edges higher and is currently trading around the mid-1.1700s. Economists at BBH expect Cable to test the August 26 high near 1.19.

Monthly UK data dump began

“Cable broke above its September 13 high near 1.1740 and sets up a test of the August 26 high near 1.19.”

“Q3 growth came in at -0.2% QoQ vs. -0.5% expected and 0.2% in Q2, which translated into a YoY rate of 2.4% vs. 2.1% expected and 4.4% in Q2. This is just the beginning, as the BoE has warned that the recession had already started and would likely last two years. Of note, strong government spending, GFCF, and net exports all boosted the overall number and those components are likely to be large drags in Q4 and beyond.”