Pound Sterling (GBP) is weak, down a meaningful 0.8% vs. the USD while still trading relatively well vs. most of the riskier G10 currencies, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
Momentum is fading from overbought levels
“Broader developments are likely to continue driving movement in GBP, and the near-term outlook for reconciliation on trade appears to be slim as media reports suggest that the US’s 10% tariff rate on UK goods may be a permanent baseline.”
“GBP/USD has retreated back to the psychologically important 1.30 level and momentum is fading from overbought levels. We also note the recent negative divergence in which momentum failed to confirm the latest highs in GBP. The near-term range is now expected to be bound between support in the upper-1.28s and resistance above 1.31.”
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