British Pound: Resistance caps recovery against US Dollar – Scotiabank

Scotiabank analysts highlight the Pound trading steady against a mixed Dollar ahead of key risk events, including US midterms, UK PMI data, and the BoE decision. Sterling’s charts show a firm undertone after a strong mid-October rebound, but gains are stalling near technical resistance in the low 1.34s, with clearly defined resistance and support levels guiding near-term price action.

Firm undertone but gains stalling

"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."