UK government borrowing (GBP17.4bn) rose well ahead of expectations in October while the CBI’s latest industrial trends survey suggested some moderate improvement in orders for UK manufacturing, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

GBP pressures base of recent consolidation range

“BoE MPC’s Mann speaks at 9.00ET and is likely to reinforce that cautious approach to policy easing outlined by her colleagues in recent days.”

“Cable is holding within the past week’s consolidation range still—but only just. Price action continues to respect the boundaries of a bear flag pattern but the base of the flag pattern at 1.2637 is under obvious pressure.”

“A clear break lower should see broader GBP losses resume to test 1.2550/60. Risks are tilted towards a fuller retracement of the Apr/Sep rally from 1.23.”