The July 2023 high at 1.3140 is a minor block – Scotiabank

The Pound Sterling (GBP) is knocking on the door of last year’s spot high around 1.3140 following this morning’s UK August PMI data, Scotiabank’s Chief FX Strategist Shaun Osborne notes.  

Stronger resistance may develop nearer 1.32

“The numbers suggest the UK economy is in a fairly decent position (growth picking up, prices slowing). Manufacturing output (52.5) was above July’s level and better than forecast, reaching the highest in a little over two years. Services and Composite data reflected solid gains.”

“GBP has had only one down day in the past 11 sessions since rebounding from the 200-day MA test below 1.27 but the recovery might be able to develop a little more. Trend strength indicators are bullish on the intraday and daily DMIs but are not obviously stretched.”

“The July 2023 high at 1.3140 is a minor block on gains but stronger resistance may develop nearer 1.32 in the short run. Support is 1.3075.”