GBP firmer as markets pare bets for BoE easing – Scotiabank

Pound Sterling (GBP) is up about 0.6% vs. the USD and a mid-performer among its G10 peers, climbing back into the 1.29-1.30 congestion range that had prevailed ahead of last week’s tariff turbulence, Scotiabank's Chief FX Strategist Shaun Osborne notes.

GBP/USD’s sharp recovery is notable

"Fundamentals are shifting in the pound’s favor as markets pare back their expectations for BoE easing, offering support via wider UK -US spreads. Friday’s industrial production and trade data releases should keep the focus on domestic fundamentals."

"GBP/USD’s sharp recovery is notable. The RSI’s dip into bearish territory (below 50) has proven to be short-lived, and the focus is now on the 1.29-1.30 congestion range that had prevailed through much of March and the first couple of trading days in April. Resistance is expected between 1.31 and 1.32 while support is expected below 1.28."