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GBP/USD steadies lower as Scotiabank flags upside toward 1.3650
Scotiabank said a centrist, market-friendly Burnham government mood and mixed UK data helped keep the pound’s early July upturn alive.
Scotiabank strategists Shaun Osborne and Eric Theoret said GBP/USD is slightly weaker as the pair gives back part of its prior day’s advance, pointing to softer momentum even as upside pressure remains possible.
They linked the move partly to market expectations around the UK government, including reports that a centrist, market-friendly Burnham team is being favored. In their view, that backdrop has helped GBP hold its early July bull reversal, with scope for gains toward at least 1.3650.
The bank also cited mixed UK economic releases. It noted May GDP rose 0.7% on a three-month basis, while May industrial production fell 0.5% month over month, and the trade deficit narrowed.
On the technical outlook, Scotiabank argued a bullish alignment of short-, medium-, and long-term trend oscillators supports treating minor dips as potential buying opportunities, with gains extending to a retest of 1.3650 in the near term, while EUR/GBP trends also look positive for the pound, according to FXStreet.
Latest closeGBP/USD 1.354 ▲1.4%