The Pound Sterling (GBP) was a very mild underperformer on the day and now turns slightly bullish, in keeping with its soft undertone since spot peaked in the middle of July, FX chief FX strategist Shaun Osborne notes.

GBP crawls upwards above 1.2700

“The UK housing market softened a little in July, according to the RICS survey data released last night but the underlying data were a little more encouraging.”

“The GBP downtrend from the mid -July peak above 1.30 remains intact but losses have been slowing in the past couple of sessions and the pound may be finding a foothold around the 200-day MA (1.2660).”

“Regaining 1.2735 would be a minor positive for Cable. Above 1.2775 is needed to trigger a bullish turn in price action at the moment.”