GBP consolidates above key short-term support at 1.3160 – Scotiabank

The Pound Sterling (GBP) is little changed on the session, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

Break below 1.3160 to signal a further drop

“Overnight price trends suggest the slide in the EUR dragged the GBP down in sympathy to some degree although EUR/GBP retains a better offered tone as the cross nears 0.84 and a potential retest of the July low at 0.8380 (lowest since August 2022).”

“Short-term trends in the GBP have turned flat after yesterday’s drop in Cable. Spot trends are holding a neutral pattern at the moment but loss of support at 1.3160 will signal potential for losses to extend a little more (towards 1.3050/60) in the coming days.”