The British Pound is testing key resistance levels against the US Dollar with GBP/USD pushing into the mid-1.36 range, but Scotiabank strategists Shaun Osborne and Eric Theoret warn this rally is primarily driven by Dollar weakness rather than fundamental Pound strength. The move comes as UK manufacturing survey data reveal improving orders and pricing power, providing modest support for Sterling. However, the currency pair’s trajectory remains heavily dependent on broader Dollar sentiment rather than domestic UK economic factors.
Scotiabank’s analysis suggests that if GBP/USD manages a sustained breakthrough above the 1.3650 level, the pair could target 1.4100 in the coming period. Traders should monitor this critical threshold closely as it represents a decisive technical breakout point. The distinction between Dollar-driven moves versus Pound-strength rallies matters significantly for position sizing and risk management.
FXnCO Insight
Watch 1.3650 as your key decision level—a clean daily close above this resistance warrants bullish positioning toward 1.41, but remain alert to Dollar reversals that could quickly unwind these gains.
Source: FXStreet