GBP/USD: upside for the market still looks fairly limited above 1.3150/60 - Scotiabank

Analysts at Scotiabank noted the key data event for Sterling today and offer their outlook for price action.

Key Quotes:

"The UK’s CBI industrial trends survey revealed a moderation in total orders in Jul (+11, from +13 – but better than the consensus call for +8) and stable selling prices at +13. The CBI reported, however, that factory inflation pressures were on the rise and overall factory output growth accelerated."

"BoE expectations have firmed marginally today, although BoE DG Broadbent’s anticipated comments yesterday provided no guidance at all on rates. A 25bps rate hike is around 72% priced in for the Aug policy meeting now."

"Sterling also caught a bid edging higher to test towards 1.3150/60 intraday but the upside for the market still looks fairly limited above there. We see firm resistance in the low 1.32s. Support is 1.3075/80."