GBP outperforms modestly – Scotiabank

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GBP outperforms modestly – Scotiabank
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The Pound Sterling (GBP) is a moderate outperformer on the session, holding fairly comfortably in the mid-1.27s versus the USD, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

The Pound Sterling is a moderate outperformer on the session, holding fairly comfortably in the mid-1.27s versus the USD, Scotiabank’s Chief FX Strategist Shaun Osborne notes. EUR/GBP weakens on the day “The BoE’s slow-moving policy adjustment process is driving spreads wider in the GBP’s favour against the EUR, with the cross trading at its lowest since 2022 after breaking out of a 1-month consolidation range which formed around 0.83.

” “But the 200-day MA remains a block on gains and the USD retains a fair degree of residual bull momentum on the daily and weekly charts which will limit the pound’s ability to strengthen for now at least. EUR/GBP is bearish.” “The cross has broken out on the downside of its recent consolidation range, trend strength oscillators are aligned bearishly across short-, medium– and long-term studies and there is nothing in the way of a test of major support at 0.82.

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