GBP/USD: bulls on thin ice below 1.2980 - Scotiabank

Analysts at Scotiabank noted that the U.K. lending and money supply data failed to ignite much interest in the GBP.

Key Quotes:

"Signs that Brexit is impacting on the local housing market were supported by mortgage approvals data which fell in the August month to reach a two-year low. Broader demand for credit from consumers was firmer, however, which will support Q3 growth somewhat."

"GBP/USD short-term technicals: negative—We think Cable remains dangerously close to key support at 1.2925. 

The pound has found little real lift from the lows tested earlier this week and we expect near-term gains to remain capped in the 1.3045/50 zone now. Near-term, weakness below 1.2980 will serve as a “heads up” warning of a run back to the low 1.29s, we think. Look to fade GBP rallies."