GBP/USD neutral near term – Scotiabank

Chief FX Strategist at Scotiabank Shaun Osborne keeps the neutral stance on the Sterling in the short term horizon.

Key Quotes

“It’s hard to be too constructive on the pound after the relative shellacking it has taken this morning”.

“We had noted support around the 1.29 area and this is roughly where the pound’s losses are slowing at the moment. A little more perspective shows that the pound is really still in consolidation mode after the gains from the 1.26 area last week”.

“Corrective losses may extend modestly (1.2860/65). But Cable will need to regain 1.2975 (and beyond) to rally from here”.