Scotiabank strategists maintain a medium-term bullish outlook for GBP/USD, citing steady trading between 1.3420 and 1.3520 before key GDP figures.
The British Pound (GBP) trades marginally higher against the US Dollar (USD), up 0.1% in early North American trading. July’s final services and composite PMIs showed slight improvements but signaled only modest growth overall.
With no major data releases scheduled before the August 13 preliminary Q2 GDP print, GBP/USD remains range-bound. Strategists note fading fundamental support, as 2-year yield spreads have retreated from late June gains, though political sentiment offers some stability.
Technical indicators suggest a neutral-to-bullish bias, with the RSI above 50 and the pair holding between 1.31 and 1.35. Near-term resistance is seen at 1.3520, while support lies at 1.3420.