Why Is Resistance Capping the British Pound’s Recovery Against the US Dollar? – Scotiabank

Sterling is holding steady against a mixed Dollar as markets await the US midterms, UK PMI figures and the BoE policy decision, Scotiabank analysts note. Although the strong rebound from mid-October has left the Pound’s charts with a firm undertone, its advance is losing momentum near technical resistance in the low 1.34s. Well-defined support and resistance levels are shaping the near-term price outlook.

Can Sterling’s firm undertone overcome stalling gains?

"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.)