GBP tentatively extending last week’s recovery – Scotiabank

💡 DMK Insight

GBP’s tight range signals indecision, and here’s why that matters for traders: With the Pound Sterling showing a tentative extension of last week’s recovery, traders should be cautious. This tight trading range often precedes a breakout, but the direction remains uncertain. Economic indicators and geopolitical events could sway GBP significantly in the coming days. Watch for key resistance levels that could trigger momentum—if GBP breaks above recent highs, it might attract more buyers, while a drop could signal a bearish reversal. Keep an eye on the upcoming economic data releases that could impact market sentiment. On the flip side, the lack of volatility might tempt some traders into range-bound strategies, but be wary of false breakouts. The real story is that GBP’s current behavior reflects broader market uncertainty, which could ripple through correlated assets like EUR/GBP. Monitor the daily chart for any signs of a breakout or reversal, as this could set the tone for the week ahead.