Scotiabank strategists attribute sterling gains to dollar softness rather than pound strength, eyeing 1.41 if 1.3650 holds.
GBP/USD extended gains into the mid-1.36 range, driven primarily by broad US dollar weakness rather than intrinsic sterling strength. Scotiabank strategists flag a sustained break above 1.3650 as a potential catalyst for a push toward 1.41.
Recent UK survey data showed improving manufacturing orders and pricing, though the pound’s advance remains tethered to dollar dynamics. The pair last traded near 1.3660, up from 1.3550 earlier in the week.
No immediate market reaction was specified, but traders are monitoring the 1.3650 level for confirmation of further upside.