GBP is stuck at 1.34 seconds – Scotiabank

The British pound (GBP) is trading lower during the session, tracking the broader tone of the US dollar (USD), notes Shaun Osborne, chief FX strategist at Scotiabank.

The risk of further relaxation at the break of the 1.3313 support

“UK manufacturing PMI was unchanged at 51.5 in September. BoE policymaker Greene (a dissenter when the MPC voted to cut rates in August) commented that a rebound in consumer demand could lift inflation again and noted that while prices are “moving in the right direction” it is doubtful how much progress was quickly made. .”

“Sterling gains stagnated in the low 1.34 area. A potential double top at 1.3430 deserves attention on the short-term chart. A loss of support at 1.3313 will open up the downside for Cable a little more and target a drop in the pound to 1.3195/00.”