The Pound Sterling (GBP) is tracking a little higher on the day, Scotiabank’s chief FX strategist Shaun Osborne notes.

GBP bulls are moving upwards towards 1.2775

“GBP is tracking a little higher on the day but, in the absence of any data or UK developments, minor gains appear to reflect some light accumulation of long GBP positions after spot stabilized around the 1.27 point.”

“The GBP is steadying but the broader, short-term downtrend from the mid-July peak above 1.30 remains intact. Sterling may be finding support around the high 1.26 zone where the 100– and 200- day MA signals are converging (1.2684 and 1.2658 respectively). Key resistance is distant at 1.2775/80.”