According to Scotiabank’s Chief FX Strategists Shaun Osborne and Eric Theoret, the Pound Sterling (GBP) is trading flat against the US Dollar (USD), consolidating near the 1.3500 level. The market showed little reaction to weak, second-tier construction PMI data, which disappointed with a deeply contractionary print of 40.1. Furthermore, UK-US yield spreads have faded recently, drifting toward the lower end of a rising channel established in early November. With no Bank of England speakers scheduled before next week, market focus remains on broader developments. While the overall trend from early November remains bullish, with rising channel support just above 1.3500, momentum is fading. The RSI has pulled back from overbought levels around 70 to mildly bullish readings near 60. Consequently, Scotiabank anticipates GBP/USD will remain range-bound between 1.3450 and 1.3550 in the near term, noting the importance of the 200-day MA at 1.3388.
GBP/USD holds steady near the 1.3500 level – Scotiabank
