GBP sustaines soft undertone – Scotiabank

The Pound Sterling (GBP) has underperformed over the past few sessions, losing ground to the USD and EUR since Wednesday, Scotiabank’s Chief FX Strategist Shaun Osborne notes.  

GBP slips to minor new cycle lows

“EURGBP’s rebound through the 0.84 area appears to have stalled but the rebound in the cross may blunt the sustained run of GBP gains against the EUR in the past few months for now.”

“Bearish—minor new, short-term cycle lows for Cable this morning are keeping the broader GBP tone weak. Losses from the recent peaks just above 1.34 risk extending to test key support at 1.30 amid a pickup in bearish momentum. Resistance is 1.3175.”