GBP/USD neutral/bullish near term – Scotiabank

Chief FX Strategist at Scotiabank Shaun Osborne keeps the neutral/bullish outlook on Cable in the short term.

Key Quotes

“The GBP is holding up relatively well against a soft USD on the session but is modestly lower against the EUR. Expect the GBP to remain well-supported ahead of Thursday’s BoE decision and inflation report (no change expected but market reaction will hinge on the level of dissent against the decision)”.

“Sterling is range-trading between support at 1.3195 and resistance at 1.3245. Early gains have stalled in the 40s, near yesterday’s intraday high, and short-term patterns suggest some risk of a drift back to the figure. Here too, however, the broader USD bear trend is well-entrenched across a range of time frames, suggesting that scope for significant GBP weakness is limited at that minor dips are a buy”.