The Pound Sterling (GBP) is marginally firmer on the day, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

GBP retains a firm undertone

“A soft US Dollar (USD) undertone and technical momentum are the essential drivers of GBP gains absent any major domestic news.”

The GBP retains a firm undertone and, having regained a 1.30 handle, a push on to retest or better the July high at 1.3044 looks a fairly easy reach from here. Bullish trend strength oscillators on the intraday, daily and weekly charts suggest limited scope for GBP losses—look for corrections to be limited to the low/mid 1.29s for now.

A push back under 1.2890/00 would signal a more significant setback, however.