British Pound: Range trade with upside risk against US Dollar – Scotiabank

Scotiabank’s Global FX Strategy team notes that Sterling remains modestly firmer, with GBP/USD continuing to pivot around long-term moving averages near 1.34. Short-term technicals are described as neutral to bullish, with last week’s rise and trend oscillators hinting at upside potential toward 1.3555/1.3560, while support is identified around 1.3390/1.3400.

Sterling holds near key averages

"Sterling is modestly firmer on the session but trading is limited, with no UK data reports this morning to drive volatility. UK Gilts are underperforming European bonds somewhat but EUR/GBP is largely stable."

"Neutral/bullish—Sterling continues to chop around the 100- and 200-day moving averages (both close to 1.34) as the flat, broad range trade in place over the past few months continues to play out."

"A solid rise in Cable last week and bullish leaning (but still weak) trend oscillators suggest some upside potential for the pound, however."

"Gains through the low 1.35 zone should allow spot to retest the recent peak around 1.3555/60. Support is 1.3390/00."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)