GBP/USD: Needs a firmer close to improve – Scotiabank

The Pound Sterling (GBP) is holding up relatively well against the stronger USD, trading little changed on the session, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

GBP steadies near 100-day MA

“BoE officials are speaking again in Washington, with Governor Bailey and MPC member Breeden on tap. Markets continue to price in a 1/4 point cut in November from the Bank.”

“GBP’s technical condition is soft but there are some signs of demand emerging on dips to the 1.2950/60 area (100-day MA at 1.2965) which is checking the broader grind lower in the pound. Oscillators are flashing oversold on the intraday and daily charts here as well.”

“But the GBP needs a positive session (higher close) today to boost chances of even a minor rebound. Resistance is 1.3020/30. EUR/GBP retains a soft undertone near 0.8300.”