The British pound (GBP) is underperforming against the US dollar (USD) in Tuesday’s session, slipping 0.1% at the time of writing after surrendering early gains that briefly lifted it into the upper 1.33 range during Asian trading hours.
Gains stall near 1.3370
Scotiabank analysts note that the pound’s weakness is not tied to any major news events, but rather reflects broader market dynamics. “There is no major news behind the GBP’s drift. EUR/GBP gains through the late September high around 0.8750 may have compounded pressure on the pound somewhat, leaving the cross just shy of the July high around 0.8770,” they said.
The bank adds that the pound’s subdued intraday performance “casts a bit of a pall over near-term technical prospects and bolsters short-term GBP resistance at 1.3370.” On the downside, Friday’s low at 1.3288 now serves as a key support level, with Scotiabank warning that “GBP losses are liable to extend below here” if the pair breaks lower.
