1.3044 level looks easy to reach – Scotiabank

The pound sterling (GBP) is slightly firmer on the day, notes Shaun Osborne, chief FX strategist at Scotiabank.

GBP maintains a firm tone

“A soft tone in the US dollar (USD) and technical momentum are key drivers of GBP gains in the absence of any major domestic news.”

GBP remains firm and, having regained a handle of 1.30, a push to retest or better the July high at 1.3044 looks fairly easy to reach from here. Bullish trend power oscillators on the intraday, daily and weekly charts suggest limited scope for losses in GBP – look for corrections to be limited to 1.29s for now.

A rejection below 1.2890/00 would signal a more significant pullback though.