Flat range but undertone remains soft – Scotiabank

The British pound (GBP) is trading marginally lower on the day, reflecting the overall soft tone of major currencies against the USD, notes Shaun Osborne, chief FX strategist at Scotiabank.

GBP is consolidating narrowly

“GBP is trading slightly lower today. GBP rallied last week as bargain hunters pare EURGBP gains into the 0.84 area.”

“Cable is creating a flat consolidation range on the intraday chart between 1.3060/1.3110. This helps stabilize short-term trends, but the broader tone in GBPUSD remains negative, with a test of 1.30 supporting the main risk ahead.”

“Weakness below 1.30 on a sustained basis would increase the odds of a deeper drop back to 1.27/1.28.”