Expert Analysis: Pound Sterling (GBP) Shows Signs of Stalling After Recent Rally
Short Term Chart Indicates Possible Peak
According to Scotiabank’s Chief FX Strategist Shaun Osborne, the Pound Sterling (GBP) has shown little change after a late rally on Thursday. The August BoE/Ipsos inflation outlook survey suggests a decrease in inflation to 2.7% in the next 12 months, the lowest reading in three years. However, longer-term inflation expectations have slightly increased to 3.2%, indicating the need for the Bank to work on stabilizing price expectations.
Despite positive price movement towards the end of the week, the GBP’s rebound seems to have hit a roadblock around 1.3150/55, now identified as key intraday resistance. The intraday chart reveals the formation of a bearish “evening star” candle, potentially pushing the spot back towards 1.31.
Financial Analysis Breakdown:
The Pound Sterling (GBP) has experienced fluctuations in its value, with recent data pointing towards a possible peak in the short term. The decrease in inflation expectations to 2.7% may offer some relief, but the slight uptick in longer-term expectations indicates ongoing challenges for stabilizing prices. Investors should monitor the GBP’s performance around the 1.3150/55 resistance level, as a reversal towards 1.31 could be on the horizon. Stay informed to make informed decisions about your investments and financial strategies.