GBP consolidates above key near-term support at 1.3160 ​​– Scotiabank

The British pound (GBP) is little changed during the session, notes Shaun Osborne, chief FX strategist at Scotiabank.

Break below 1.3160 ​​to signal a further decline

“Overnight price trends suggest that the slide in the euro has taken the pound lower to some extent, although EUR/GBP retains a more bullish tone as the cross approaches 0.84 and a potential retest of the July low at 0.8380 (lowest since August 2022). “

“Short-term trends in sterling have turned flat after yesterday’s decline in Cable. Spot trends are maintaining a neutral pattern at the moment, but the loss of support at 1.3160 ​​will signal the potential for losses to extend a bit further (towards 1.3050/60) in the coming days.”