Following a two-cent recovery from yesterday's intraday low and stretch gains against the EUR to retest the mid-0.82 zone on the cross, Scotiabank's Chief FX Strategist Shaun Osborne reports that the GBP is trading slightly lower on the day.
The GBP/USD recovery is capped by a 40-day MA.
The GBP should perform better on the cross in the upcoming weeks and months because the UK is somewhat less exposed to US tariffs than the Eurozone. However, the UK government will need to carefully weigh its desire to mend relations with Europe against the necessity of maintaining a close relationship with President Trump.
The 40-day MA that has been limiting GBP gains since early December, 1.2450, is where the GBP's reversal from yesterday's intraday low stabilized. In comparison to its peers, Sterling appears to be in a potentially favorable technical position, but more work is required to support upside potential. Short-term bull momentum would be strengthened by near-term gains above 1.25. There is 1.2350/75 support.
The GBP/USD recovery is capped by a 40-day MA.
The GBP should perform better on the cross in the upcoming weeks and months because the UK is somewhat less exposed to US tariffs than the Eurozone. However, the UK government will need to carefully weigh its desire to mend relations with Europe against the necessity of maintaining a close relationship with President Trump.
The 40-day MA that has been limiting GBP gains since early December, 1.2450, is where the GBP's reversal from yesterday's intraday low stabilized. In comparison to its peers, Sterling appears to be in a potentially favorable technical position, but more work is required to support upside potential. Short-term bull momentum would be strengthened by near-term gains above 1.25. There is 1.2350/75 support.
