The Pound Sterling (GBP) retains a somewhat firm undertone in the upper 1.27s. It also failed to hold the post NFP gains on the USD Friday but it has found a solid bid off the intraday low in European trade, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

Reeves heads to Brussels to help UK/EU reset

“There were no UK data releases of note today. Chancellor Reeves is visiting Brussels as the Labour government pursues its attempt to ‘reset’ UK relations with the EU. Improvement here would be constructive for the GBP in the medium term.”

“Intraday price action looks a little more GBP-positive but gains will have to be sustained over the course of the session for a bull signal to be confirmed. Sterling tested the 200-day MA (1.2822) effectively last week.”

“Regaining the low 1.28 region on a sustained basis would suggest a new, slightly firmer 1.28/1.30 range may be developing. Support is 1.2720/25.”