The British pound is trading little changed in weak market conditions, with sentiment affected by broader currency trends. Technical signals suggest that the pound is heading towards another potential rally, with support near 1.3320, report by Sean Osborne and Eric Theort, chief FX strategist at Scotiabank.
EUR/GBP supported by rising Eurozone yields
“The pound was little changed in quiet trading. There were no data reports from the UK this morning, leaving sentiment at the mercy of the broader trend in the major currencies. Rising euro zone yields, and compression in yield spreads with UK Treasuries, suggest that EUR/GBP is likely to remain supported on dips for the time being.”
“GBP is range-bound today but technical signals are bullish on the daily chart after a strong rally in the pound mid-week pushed the spot price above 1.3284 retracement resistance (38.2% Fib from September/November low).”
“Intraday gains are stalling around the 50% retracement now but uptrend signals on the intraday and daily DMI suggest the pound is teetering ahead of another push higher. Bullish above 1.3355/65 intraday. Support is 1.3320.”
