GBP is attempting stabilization – Scotiabank
|The Pound Sterling (GBP) is up 0.2% against the US Dollar (USD) and a mid-performer among the G10, attempting stabilization in the mid-1.34s following an aggressive pullback from its July 1 multi-year high, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
RSI is marginally bearish just above 40
"There have been no major data releases and market participants are looking to Wednesday’s CPI release as the next major event risk. The release is unlikely to shift expectations for the BoE, where markets are pricing one 25bpt cut at the next meeting on August 7. Recent BoE communication has been dovish, with a specific focus on concerns related to the labor market."
"The latest pullback looks to have struggled to extend much below the 50 day MA (1.3501), a level of medium-term support. The RSI is marginally bearish just above 40 and we look to a near-term range bound between 1.3400 support and 1.3520 resistance."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.