Scotiabank strategists see GBP/USD dips as a buying opportunity, targeting 1.3650 amid mixed UK data and centrist political expectations.
GBP/USD retreated slightly after yesterday’s sharp advance, but strategists view the pullback as a buying opportunity. The pair’s early July bull reversal remains intact, with technical targets set at 1.3650, according to market analysis.
UK economic data released earlier was mixed. May GDP rose 0.7% in 3m/3m terms, exceeding forecasts, while Industrial Production fell 0.5% month-over-month. The trade deficit narrowed, but components were uneven, offsetting some of the positive momentum.
Investors reacted positively to reports that centrist leadership under potential PM Burnham could favor market-friendly policies. The shift away from left-wing influence has bolstered sentiment, though some political friction remains.