The Pound Sterling (GBP) is up a modest 0.2% and outperforming most of the G10 currencies in quiet trade, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

GBP’s medium-term trend remains bullish

"There have been no fundamental releases, and markets are focused on Friday’s trade and industrial production data, which will inform the BoE’s discussions as we approach the next meeting on August 7.

"BoE commentary remains decidedly dovish, and markets are paying attention as they price 22bpts of easing for the next meeting and just over 50bpts of cumulative easing by December."

"The GBP’s medium-term trend remains bullish but the latest consolidation has robbed it of momentum. The RSI is neutral, hovering just above 50. We continue to highlight the importance of the 50 day MA (1.3493) as a medium-term support level and see the near-term range bound between 1.3520 support and 1.3680 resistance."