The Pound Sterling (GBP) is trading modestly firmer on the daily chart today. While gains are slight, they may be enough to signal a halt in the GBP’s recent softness, Scotiabank’s FX analyst Shaun Osborne notes.

Cable is showing signs of steadying around 1.29

“Cable is showing signs of steadying around 1.29. There were no data reports from the UK today but preliminary July PMI data are released tomorrow may—or may not—help settle equivocal market bets on the outlook for a BoE rate cut at the August 1 policy decision. Swaps suggest 11bps of easing is priced in at this point.”

“Sterling is trading modestly firmer on the daily chart today. While gains are slight, they may be enough to signal a halt (and possibly a rebound) in the GBP’s recent softness. The daily candle pattern shows a possible ‘harami’ signal developing today which—if confirmed through the close of trade on the day—should signal firmer support at 1.2900/10. Resistance is 1.2970/75 and 1.3045/50.”