GBP is looking well supported – Scotiabank

FXStreet Insights Team FXStreet

The Pound Sterling (GBP) is trading with modest support and entering Monday’s NA session with a slightly bullish bias, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

Markets signal confidence in cabinet shuffle

"This week’s release calendar is concentrated toward the end of the week, offering little ahead of Friday’s trade and industrial production figures. The outlook for relative central bank policy is also supportive and yield spreads are moving higher. Political developments are in focus following PM Starmer’s cabinet shuffle last week."

"Markets appear to be endorsing the change, and risk reversals in the options market are showing signs of a shift following their recent dramatic (bearish) turn. The overall technical outlook remains muted with a marginally bullish RSI reflecting a generally flat range since mid -August with movement bound between the lower 1.33s and 1.36. We look to a nearterm range of 1.3480 and 1.3580."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

GBP/USD retreats from weekly high vs firmer USD as focus shifts to BoE, US data

The GBP/USD pair struggles to capitalize on the previous day's strong move up to the weekly high and drifts lower during the Asian session on Thursday. Spot prices currently trade around mid-1.3300s, down over 0.10% for the day, and, for now, seem to have stalled the recovery move from a nearly four-week low, touched on Tuesday.

EUR/USD edges lower to near 1.1450 as Fed holds rates steady, traders await Eurozone and German GDP

The EUR/USD pair trades with mild losses around 1.1465 during the early Asian session on Thursday. The US Dollar edges higher against the Euro on a hawkish Federal Reserve rate hold. Traders brace for the preliminary readings of the Gross Domestic Product for the second quarter from Germany and the Eurozone.

Gold eyes $4,000 and US GDP amid fresh US-Iran tensions

Gold faces rejection once again above $4,100 in the aftermath of the Fed verdict-led volatility. The US Dollar pauses post-FOMC sell-off as the US launches fresh strikes on Iran. A daily closing above $4,100 and the RSI above 50 are needed to negate Gold’s bearish outlook.

Mixed signals leave XRP and XLM at crossroads

Ripple and Stellar are trading at critical technical levels on Thursday. XRP has stabilized above the psychological $1.00 support, while XLM is testing support at $0.173. Traders should be cautious as mixed derivatives metrics keep the outlook uncertain for both altcoins. Derivatives data shows mixed sentiment among traders. CoinGlass’ long-to-short ratio for XRP reads 1.02 on Thursday.

Fed review: Reversing course (?)

At face value, the FOMC's 9-3 split decision hold was exactly in line with the expectations we laid out in our Fed preview - a divided hold, 22 July. We also named the three dissenters - Hammack, Logan and Kashkari - as the most likely hawks to support rapid tightening.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.