GBP/USD: A daily close above 1.2750 may help the turn higher – Scotiabank

The Pound Sterling (GBP) is dead flat on the day, Scotiabank’s chief FX strategist Shaun Osborne notes.

GBP is little changed on the session

“There were no UK data reports out and the pound is essentially reflecting the marginal movement seen in its G10 peers today as investors relax after the past week’s turmoil. More range trading is likely into the weekend. UK jobs and wage data Tuesday may help shape the outlook for BoE rate policy.”

“GBP is little changed on the session but there are clear signs that the GBP’s recent slide is steadying. Noted support at the 200-day MA (1.2663) has provided the platform for a bullish turn in price action via a ‘morning star’ reversal on the daily candle chart.”

“GBP is testing key, trend resistance off the mid-July high this morning. A daily close above 1.2750 should help the turn higher in the pound develop more momentum in the days ahead.”