GBP/USD flat below 1.3150 ahead of GDP

• Cable appears sidelined within a tight range
• Markets poised for a rate hike in November, despite Cunliffe
• Flash Q3 GDP figures to take centre stage

The Sterling is trading almost unchanged vs. the greenback on Wednesday, taking GBP/USD to a consolidative theme below 1.3150 ahead of the opening bell in Europe.

GBP/USD attention to GDP figures

Cable is looking to stabilize in the lower bound of the weekly range following yesterday’s sharp retracement, with decent support so far emerging in the low-1.3100s.

GBP took a hit on Tuesday after BoE’s deputy governor Sir J.Cunliffe poured cold water over the possibility of a rate hike at next month’s meeting. In fact, Cunliffe said higher rates in November are an ‘open question’ amidst the current weak economic growth. Cunliffe’s view is at odds with the broad market consensus, which expects the ‘Old Lady’ to raise rates on November 2.

In addition, Brexit concerns remain everything but abated against the backdrop of a complete absence of progress in the EU-UK talks.

Ahead in the session, UK’s advanced GDP figures for the July-September period will be the salient point across the Channel, whereas new home sales and September’s durable goods orders should grab all the attention in the US calendar.

GBP/USD levels to consider

As of writing the pair is down 0.04% at 1.3131 and a breakdown of 1.3114 (low Oct.24) would open the door to 1.3087 (low Oct.20) and then 1.3055 (100-day sma). On the other hand, the initial resistance lines up at 1.3200 (10-day sma) seconded by 1.3228 (high Oct.23) and finally 1.3338 (high Oct.13).