GBP supports a soft tone – Scotiabank

The British pound (GBP) has underperformed over the past few sessions, losing ground to the USD and EUR on Wednesday, notes Shaun Osborne, chief FX strategist at Scotiabank.

GBP slips to new cycle lows

“EURGBP’s recovery through the 0.84 area appears to have stalled, but the cross bounce could reduce the sustained success of GBP’s gains against EUR over the past few months for now.”

“Bearish — new near-term lows for Cable this morning keep the broader GBP tone weak. Losses from recent peaks just above 1.34 risk extending to test key support at 1.30 amid increasing bearish momentum. Resistance is at 1.3175.”