The Pound Sterling (GBP) is showing little change and underperforming in the current session, according to Scotiabank’s Chief FX Strategist Shaun Osborne.
Key Insights on GBP Performance
Osborne highlights that the UK GDP for July was flat, falling below expectations of a 0.2% increase. Additionally, the GDP for the July quarter saw a 0.5% rise, slightly lower than the forecasted 0.6%. The details of the report were generally softer than expected, particularly in the manufacturing sector.
Despite the slowdown in growth momentum, Osborne notes that there is no significant impact on the Bank of England’s near-term outlook. The market is still pricing in a low risk (4-5bps) of a rate cut this month.
Currently, GBP gains are being limited in the low 1.31 area due to soft price action intraday. The short-term outlook suggests more range trading, with trend signals indicating very weak and neutral levels. Support levels are at 1.3050/60, while resistance is at 1.3115.
Expert Analysis and Forecast
Osborne’s analysis indicates a cautious approach to GBP trading in the current market conditions. While near-term prospects for the currency may be subdued, the overall outlook remains stable with potential for fluctuations in the short term.
Investors and traders should closely monitor key support and resistance levels to make informed decisions in the volatile market environment.