The Pound Sterling (GBP) is quietly consolidating in a tight range and entering Friday’s NA session unchanged the against US Dollar (USD), Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

Outlook remains bullish despite this week’s political turmoil

"The outlook for GBP remains bullish, despite this week’s political turbulence, and markets have expressed relief and a renewed confidence in the UK’s fiscal situation following the government’s endorsement of Chancellor Reeves."

"Next week’s release calendar is heavy as we look to trade and industrial production data, which will inform discussions into the next BoE policy decision on August 7. Markets are pricing roughly 22bpts of easing for August and a cumulative 54bpts of cuts by year-end."

"The trend is bullish but momentum has softened and we note that the RSI continues to drift toward the neutral zone around 50. The 50 day MA (1.3474) remains an important level of medium-term support, and we look to a near-term trading range bound between 1.3600 support and 1.3780 resistance."