The Pound Sterling (GBP) is softer, in line with its major currency peers, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

GBP is trading softer on the day

“There were no UK data reports to shape trade this morning and, like the EUR, GBP trading largely reflects the broader tone in the USD ahead of today’s US CPI data. Sterling is a relative outperformer over the past 3 months, however, reflecting the slow-moving policy evolution at the BoE. That trend should remain in place, supporting GBP gains on the crosses.”

“GBP is trading towards the lower end of the past week’s trading range but found firm support in the low 1.27s through European dealing. Daily price action does look a little soft, however, and a low close for the pound today would signal more risk of losses in the days ahead following last week’s failure to challenge the 200-day MA. Support is 1.2700/10 and 1.2630. Resistance is 1.2775 and 1.2825.”