GBP bounces back from mid 1.31s – Scotiabank

Earlier UK CPI data eased already subdued BoE expectations for the next meeting, while Sterling (GBP) pushed the data higher to retest yesterday’s highs at the low 1.32 level, notes Shaun Osborne, Scotiabank’s chief FX strategist.

Core and services CPI gains, reducing BoE bets

“UK CPI data was in line with expectations. The data further lowered BoE expectations for tomorrow’s meeting. Sterling pushed the data higher to retest yesterday’s highs in 1.32 seconds.”

“A solid intraday bounce from the mid-1.31 area gives a positive turn to GBP price action in the short term, but gains stalled around 1.3225/30, close to yesterday’s high. Broader price patterns and strongly bullish trend signals suggest a trend towards GBP gains and firm support on minor downside.”

“Resistance is 1.3255/65 and 1.3330. Support is 1.3150.”