The Pound Sterling (GBP) is little changed on the day after rallying in late trade Thursday, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

Short term chart suggests a top

“The August BoE/Ipsos inflation outlook survey anticipates inflation dipping to 2.7% in the next 12 months, down from 2.8% in July. This is the lowest reading in three years. Longer run inflation expectations crept a tenth higher to 3.2%, so the Bank still has some work to anchor longer run price expectations.”

“Positive late week price action in the GBP is being overshadowed by signs that the pound’s rebound has stalled around 1.3150/55 (now key intraday resistance) through the overnight session. The intraday chart shows the development of a bearish “evening star” candle which may push spot back towards 1.31.”