Key resistance in sight – Scotiabank

The Pound Sterling (GBP) is a moderate outperformer on the session, gaining a little over 0.5% on the softer US Dollar (USD), Scotiabank’s Chief FX Strategist Shaun Osborne notes.

GBP extends gains through the low 1.27s

“That can perhaps be attributed more to positioning and technicals than fundamental developments. The only data of note released today was a slightly better-than-forecast Construction PMI for November (55.2). BoE MPC member Greene is speaking later in the session.”

“Officials have been consistent on their outlook for policy, suggesting cautious cuts at a pace of one per quarter is the base case for 2025—a little more dovish than markets are currently pricing.”

“Grinding gains for the pound this week leave cable trading comfortably above 1.27. The short-term pattern of trade that has developed over the past month suggests a potential inverse Head & Shoulders which may trigger a further GBP rise (towards 1.30) on a move above the 1.2770 neckline trigger. Support is 1.2655.”