British Pound: Improving sentiment supports gains against US Dollar – Scotiabank

Scotiabank strategists Shaun Osborne and Eric Theoret report the British Pound (GBP) is posting fractional gains versus the US Dollar (USD) and outperforming G10 peers as improving sentiment supports price action. They point to Thursday’s United Kingdom (UK) data, including Q2 Gross Domestic Product (GDP) and production figures, as key. Short-term technicals are bullish, with RSI at fresh highs, upside targets in the mid-1.35s to mid-1.36s, and support near 1.3400 and a near-term range of 1.3480–1.3580.

Pound leads G10 with bullish technicals

"The pound is showing fractional gains vs. the USD and outperforming all of the G10 currencies in mixed trade."

"Fundamental releases have been limited and we continue to highlight the importance of Thursday’s data that include the preliminary (2nd) Q2 GDP figures, and monthly trade and industrial production data."

"The next upside target is the mid-July high in the mid-1.35s and we also note the May 1 peak in the mid-1.36s."

"Support is expected at 1.3400. We look to a near-term range bound between 1.3480 and 1.3580."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)