GBP is consolidating recent rally – Scotiabank

Pound Sterling (GBP) is entering Thursday’s American session flat against the US Dollar (USD) with relative gains against all of the G-10 currencies with the exception of Swedish Krona (SEK) and Norwegian Krone (NOK), Scotiabank's Chief FX Strategist Shaun Osborne notes.

GBP to remain bullish medium-term

"The absence of domestic data releases and central bank events leaves the pound vulnerable to trading on broader developments and the market tone, with some risk from the ECB as well. We see the balance of risk as being tilted to the upside, and remain bullish GBP from a longer-term perspective."

"GBP/USD appears to be consolidating following an impressive 7-session rally however we see no major resistance ahead of the September 2024 high around 1.34. Near-term support is expected between 1.3220 and 1.32."