GBP tags along with general FX trend – Scotiabank

Pound Sterling (GBP) briefly nudged above 1.29 for the first time since November. Domestic news is very thin on the ground this morning, Scotiabank's Chief FX Strategist Shaun Osborne notes. 

GBP may have peaked above 1.29 for now

"The GBP’s firm performance this week largely reflects the broader sell-off in the USD rather than any local developments. Sterling continues to lose ground versus the EUR, with cross extending through the upper 0.83s to test the 200-day MA (0.8387). EUR outperformance may extend towards 0.85 in the near term." 

"Intraday trading patterns suggest the pound has peaked in the short run at least. The 6-hour chart reflects a bearish outside range session developed in Asian trading as the GBP peaked in the low 1.29 zone. Solidly bullish trend momentum on the short– and medium-term oscillators should mean firm support on dips to the 1.2775/1.2825 range, however."