The Pound Sterling (GBP) is quietly consolidating in a tight range and entering Friday’s NA session unchanged the against US Dollar (USD), Scotiabank’s Chief FX Strategists Shaun Osborne and Eric Theoret report.
Outlook remains bullish despite this week’s political turmoil
“The outlook for GBP remains bullish, despite this week’s political turbulence, and markets have expressed relief and a renewed confidence in the UK’s fiscal situation following the government’s endorsement of Chancellor Reeves.”
“Next week’s release calendar is heavy as we look to trade and industrial production data, which will inform discussions into the next BoE policy decision on August 7. Markets are pricing roughly 22bpts of easing for August and a cumulative 54bpts of cuts by year-end.”
“The trend is bullish but momentum has softened and we note that the RSI continues to drift toward the neutral zone around 50. The 50 day MA (1.3474) remains an important level of medium-term support, and we look to a near-term trading range bound between 1.3600 support and 1.3780 resistance.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
