The Pound Sterling Holds Steady Against the USD
According to Scotiabank’s Chief FX Strategist Shaun Osborne, the Pound Sterling (GBP) is showing resilience in the face of a stronger USD, with minimal changes in trading activity.
BoE Officials’ Remarks in Focus
- Bank of England (BoE) officials, including Governor Bailey and MPC member Breeden, are scheduled to speak in Washington.
- Market expectations point towards a potential 1/4 point interest rate cut in November by the Bank of England.
Technical Analysis of GBP
Despite a soft technical outlook, there are indications of demand emerging around the 1.2950/60 level, which coincides with the 100-day Moving Average at 1.2965. This support level is helping to stem the downward pressure on the pound.
Additionally, oscillators on both intraday and daily charts are signaling oversold conditions, suggesting a possible reversal in the near future.
Key Levels to Watch
- For a potential rebound, GBP needs to close higher today to improve the likelihood of a recovery.
- Resistance levels to monitor are at 1.3020/30.
- EUR/GBP remains weak, hovering around the 0.8300 mark.
Analysis:
The Pound Sterling’s resilience against the USD, despite market expectations of a rate cut by the Bank of England, indicates underlying strength in the currency. Technical indicators suggest a potential rebound in the GBP, with key support levels holding firm around the 1.2950/60 area. Traders should closely monitor BoE officials’ statements and market sentiment for further insights into the future direction of the Pound Sterling.