British Pound: Rebound against US Dollar capped by resistance – Scotiabank

The low 1.34s are proving a barrier to Sterling’s gains. Scotiabank analysts note that the Pound is holding steady against a mixed Dollar ahead of key risk events: the US midterms, UK PMI releases and the BoE decision. A strong rebound from mid-October leaves the charts with a firm undertone. However, gains are losing momentum near technical resistance, with clearly defined support and resistance levels shaping near-term price action.

Low 1.34s stall gains despite firm undertone

"The pound is stable against the mixed USD overall. There were no UK data reports today and there is little incentive to move the pound significantly ahead of the US mid terms, tomorrow’s final UK Services and Composite PMI data for October and Thursday’s BoE policy decision."

"The strong rebound from the mid-October low which formed a bullish weekly reversal remains the salient feature of the charts and, with moderately bullish short-term trend momentum signals, keeps focus on scope for gains."

"Neutral/bullish – Sterling retains a firm-ish undertone, but gains have stalled against noted resistance in the low 1.34 area (200-day MA at 1.3426)."

"Resistance is 1.3470 and 1.3550 ahead of a return to the August peak at 1.3676. Key support is 1.3370/75."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Learn more.)