The GBP is following the broad dollar-negative tone with a 0.4% gain on the day to the mid-1.31s. A close above this region could signal a possible reversal in the cable, economists at Scotiabank report.

Weak resistance stands at ~1.3180 ahead of the 1.32 mark

“GBP price action since its test of 1.33 last week points to continued losses toward a re-test of 1.30. Still, the currency held up decently on two occasions at support in the mid-figure zone yesterday and managed to break cleanly past 1.31 without much selling pressure.”

“A close above 1.3150 on the day would signal a possible reversal in the GBP that leaves the 1.30s behind more firmly; weak resistance stands at ~1.3180 ahead of the 1.32 mark.”