GBP holds steady amid quiet trading – Scotiabank

The Pound Sterling (GBP) trades little changed in subdued market conditions, with sentiment influenced by broader currency trends. Technical signals suggest the pound is coiling for another potential push higher, with support near 1.3320, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

EUR/GBP supported by rising eurozone yields

"Sterling is little changed in quiet trade. There were no data reports from the UK this morning, leaving sentiment at the mercy of the broader trend in the major currencies. Rising Eurozone yields, compressing yield spreads with Gilts, suggest EUR/GBP is likely to remain supported on dips for now."

"The pound is caught in a range on the day but technical signals lean bullish on the daily chart after a solid rise in the pound midweek pushed spot well above 1.3284 retracement resistance (38.2% Fibonacci of the Sep/Nov decline)."

"Intraday gains are stalling around the 50% retracement now but bullish trend signals on the intraday and daily DMI suggest the pound is coiling ahead of another push higher. Bullish above 1.3355/65 intraday. Support is 1.3320."