GBP is looking well supported - Scotiabank

The Pound Sterling (GBP) is trading with modest support and entering Monday's NA session with a slightly bullish bias, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

Markets signal confidence in cabinet shuffle

"This week's release calendar is concentrated toward the end of the week, offering little ahead of Friday's trade and industrial production figures. The outlook for relative central bank policy is also supportive and yield spreads are moving higher. Political developments are in focus following PM Starmer's cabinet shuffle last week."

"Markets appear to be endorsing the change, and risk reversals in the options market are showing signs of a shift following their recent dramatic (bearish) turn. The overall technical outlook remains muted with a marginally bullish RSI reflecting a generally flat range since mid -August with movement bound between the lower 1.33s and 1.36. We look to a nearterm range of 1.3480 and 1.3580."