GBP Gains Stagnant Around 1.3150 – Scotiabank

The British pound (GBP) was little changed on the day after a surge in late Thursday trading, notes Shaun Osborne, chief FX strategist at Scotiabank.

The short-term chart suggests a top

“The August BoE/Ipsos Inflation Outlook Survey expects inflation to fall to 2.7% over the next 12 months, down from 2.8% in July. This is the lowest value in the last three years. Longer-term inflation expectations rose by a tenth to 3.2%, so the Bank still has some work to do to anchor longer-term price expectations.”

“The positive price action at the end of the week in GBP is overshadowed by signs that sterling’s recovery stalled around 1.3150/55 (now key intraday resistance) during the overnight session. The intraday chart shows the development of an “evening star” candle that may push the spot back towards 1.31.”