Scotiabank strategists cite layered resistance and limited data as GBP weakens slightly against USD near-term.
The British Pound (GBP) dipped 0.1% against the US Dollar (USD) early Tuesday, retreating from resistance around 1.3400. Strategists note improving momentum but multiple resistance levels between 1.3420 and 1.3520 cap further gains, confining GBP/USD to a 1.3350–1.3450 range in the near term.
Recent sessions saw limited fundamental releases or Bank of England (BoE) developments, with markets focused on media reports of proposed bank capital rule easing. Political uncertainty persists amid a leadership transition, while the UK’s Office for Budget Responsibility (OBR) highlighted fiscal challenges, including a £100bn cost to stabilize national debt at 95% of GDP.
Technical indicators show the RSI recovering above the neutral 50 threshold, signaling improving momentum. However, the 50- and 200-day moving averages near 1.3400 continue to act as resistance, reinforcing the near-term trading range.