The Pound Sterling (GBP) has nudged a little higher in quiet Asian and European trade after closing on the lows yesterday, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

Next resistance is at 1.2925

“With little data to cue off of and calmer market conditions prevailing in stocks, GBP has benefited from some light short covering demand into the weekend.”

“Sterling is consolidating in a tight trading range. Moderate gains on the session so far are corrective but may only mark a pause in the GBP’s slide before losses resume.”

“Cable’s closing break of retracement support at 1.2879 yesterday suggests more weakness—potentially to the 1.2775/1.2825 range—is the most likely course for the pound at the moment. Resistance is 1.2925.”