GBP finds bargain hunters on weakness near 1.30 – Scotiabank

The British Pound (GBP) continues to find firm support on weakness through the low 1.30 zone and has recovered quite firmly from the intraday low again today, notes Shaun Osborne, Chief FX Strategist at Scotiabank.

GBP is trying to bottom

“UK data showed only moderate progress on elevated wages (Average Weekly Earnings fell to 3.8% in August from an upwardly revised 4.1%). While jobless claims rose just over “However, swap pricing still suggests that a 25 basis point cut by the BoE in November is almost a given.”

“GBP price action is showing some signs of attempting to bottom, at least in the short term. The intraday chart suggests that a “rounded bottom” base may be developing as bargain hunters take advantage of GBP declines to the low 1.30 zone. Solid demand from the European low suggests a firm intraday base at least at 1.3030/35.”

“Resistance is at 1.3115 and 1.3130; gains through the latter may add near-term bullish momentum.”

Source: Fx Street

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