The Pound Sterling (GBP) is currently holding steady just below the 1.30 mark. All eyes in the UK are on the upcoming UK CPI report, according to Scotiabank’s chief FX strategist Shaun Osborne.
There is a possibility of a retest of last July’s high of 1.3155. Headline price growth is expected to drop below 2% for the first time since 2021. However, the focus will be on services inflation, which is projected to ease to 5.6%. This could impact expectations of a potential rate cut on August 1, with around a 50% probability according to current market pricing.
GBP/USD has remained relatively unchanged in today’s session, following solid gains over the past week just below 1.30. The currency pair is supported by intraday, daily, and weekly DMI signals. It is also showing strong gains above long-term trend resistance at 1.2645. A clear move above 1.30 could lead to a retest of last July’s high at 1.3155. Support levels are seen at 1.2850/80.