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Scotiabank flags GBP/USD resistance near 1.3600 as risk perceptions improve
Scotiabank expects UK political risk sentiment to support GBP/USD, with the near-term trading band seen at 1.3450 to 1.3550 ahead of UK Q3 GDP and June trade and industrial production data.
Scotiabank strategists Shaun Osborne and Eric Theoret said the British pound is consolidating gains near the top of its one-month and multi-month ranges, as price action tracks fading downside risk reversals in GBP/USD.
They pointed to improved UK political risk perception and slightly more constructive yield spreads as factors supporting the currency pair, while noting technical levels that frame near-term trading.
The analysts highlighted resistance around 1.3600 to the 1.36 area, with additional potential resistance closer to 1.3600 and the May peaks in the mid 1.36s, while support is seen in the mid to lower 1.34s.
They added that a limited release calendar ahead of Thursday’s Q3 GDP and June trade and industrial production could shape volatility, and they expect GBP/USD to remain range bound between 1.3450 and 1.3550.
Latest closeGBP/USD 1.351 ▲0.4%