Scotiabank strategists highlight improved GBP sentiment and limited resistance toward 2026 highs near 1.38 amid light data.
The British Pound remains steady against the US Dollar and outperforms G10 peers despite broad USD strength. GBP/USD shows resilience, with strategists noting improved sentiment in options markets and potential for gains toward the upper-1.38s, a 2026 high target.
Near-term focus shifts to UK Prime Minister Burnham’s visit to Kiev and the October 28 autumn budget. Risk reversals indicate fading downside protection demand, while the GBP’s relative strength index (RSI) hovers near overbought levels at 70.
Resistance above 1.3650 appears limited, with support levels identified at 1.3600 and 1.3550. The pound’s outperformance on crosses further underscores its current momentum.