British Pound: Recovery against US Dollar stalls at resistance – Scotiabank

With UK PMI data, the BoE decision and US midterms ahead, the Pound is holding steady against a mixed Dollar, Scotiabank analysts note. A strong rebound in mid-October has left Sterling’s charts with a firm undertone, although advances are losing momentum near technical resistance in the low 1.34s. Clearly defined support and resistance levels are shaping the near-term price action.

Sterling holds firm as gains lose momentum

"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. Know more.)