The Pound Sterling (GBP) is trading marginally firmer on the session and has improved a little relative to Friday’s intraday peak, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
GBP holds solid technical gain from last week
“There were no UK data reports today and the GBP’s performance simply reflects the broader USD tone—and, perhaps, some signs of technical strength.”
“GBP closed out last week firmly, cementing the third leg of a bullish “morning star” candle pattern on the weekly chart. Price also broke above bear trend resistance off the September peak.”
“Solid gains again today so far, at least, support the more positive technical outlook and the prospect of a retracement towards the 1.26/1.27 range (1.2610 is the 38.2% retracement of the 1.34/1.21 decline). Support is 1.2415/25.”
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