GBP is attempting stabilization - Scotiabank

The Pound Sterling (GBP) is up 0.2% against the US Dollar (USD) and a mid-performer among the G10, attempting stabilization in the mid-1.34s following an aggressive pullback from its July 1 multi-year high, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

RSI is marginally bearish just above 40

"There have been no major data releases and market participants are looking to Wednesday's CPI release as the next major event risk. The release is unlikely to shift expectations for the BoE, where markets are pricing one 25bpt cut at the next meeting on August 7. Recent BoE communication has been dovish, with a specific focus on concerns related to the labor market."

"The latest pullback looks to have struggled to extend much below the 50 day MA (1.3501), a level of medium-term support. The RSI is marginally bearish just above 40 and we look to a near-term range bound between 1.3400 support and 1.3520 resistance."