GBP closes to early week peak – Scotiabank

Nationwide house price data fell 0.2% in August, but UK lending data suggests some strength in the UK housing market as house hunters anticipate easier BoE policy, notes Shaun Osborne , Scotiabank’s Chief FX Strategist.

GBP holds most of the gains

“Mortgage approvals rose by 62,000 in July, the strongest in two years. Net secured home loans rose by £2.8bn, meanwhile. Sterling is marginally higher today but the place is consolidating.”

“GBP price action over the week suggests that sterling’s rally has stalled, but the technical jury is still out on whether a deeper reversal or correction lower will develop. Short-term price action reflects some deviation in sterling from this week’s peak and some signs of stronger bearish interest on GBP’s minor gains.”

“GBP support is at 1.3125. Resistance is 1.3200/05.”