Scotiabank strategists see a sustained move above 1.3650 in Cable as a bullish signal for further gains toward 1.41 this year.
GBP/USD has retested its May peak near 1.3658, driven primarily by broad USD weakness rather than intrinsic GBP strength. Scotiabank strategists note the break above 1.3650/60 resistance suggests potential for an extension toward 1.41 over the remainder of the year.
Recent UK survey data showed improvement in manufacturing orders, reaching their best level since late 2024, alongside a rebound in industrial pricing power. The August CBI Trends survey highlighted these gains, though underlying economic conditions remain mixed.
Technical analysis indicates the pair’s trend dynamics remain bullish after two tests of 1.3150 support in April and June. A sustained push above 1.3650 is now seen as a key catalyst for further upside.