Steady sell below 1.31 – Scotiabank

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

The GBP changed little on the day

“Cable is showing a marginal gain on the day, but there seems to be little momentum behind the price action. The British Retail Consortium reported a 1.7% rise in like-for-like retail sales in September.”

“Spot slipped into a minor consolidation range just below 1.31. The intraday chart reflects a small bull hammer pattern forming in European trade to coincide with the spot break above steep bearish resistance off the late August high.”

“These are mildly positive developments, but sterling will need to show much more strength – above 1.3175 – if it is to recover. Trend momentum for shorter-term studies remains deeply bearish at this point. Support is 1.3050/60.”