Remains firm above 1.30 – Scotiabank

The Pound Sterling (GBP) is little changed—but looking relatively comfortable—above 1.30, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

GBP set to remain on track for 1.3150

“UK government finances data showed a significantly larger than forecast borrowing requirement in July (GBP19.2bn) but the data had no impact on the GBP’s performance. Near-term direction hinges on the USD’s reaction to US jobs data revisions, the FOMC minutes and Powell’s Jackson Hole comments Friday.”

GBP remains firm, just below yesterday’s peak which was the highest print for Cable since mid-2023. Trend momentum signals are aligned bullishly for the GBP on the intraday and daily DMIs and have room to allow this move up in the GBP to develop and keep the GBP on track for 1.3150. Dips to the mid/upper 1.29s should attract support.