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British Pound: Sterling recovery eyes 1.36 caps against US Dollar – Scotiabank
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FXStreet Forex & Commodities News
Improved United Kingdom (UK) political risk perception and slightly more constructive yield spreads support GBP/USD, while technicals point to resistance around 1.3600–1.36s and support in the mid/lower 1.34s.
Sterling consolidates near recent highs"The pound is quiet, consolidating its recent gains toward the upper end of both its local (one month) and medium term (multi-month) range."
"The recovery is important, reflecting an overall improvement in the market’s assessment of UK (specifically political) risk and offers scope for further near-term strength for the pound."
Yield spreads are also looking slightly more constructive for the pound as well, showing signs of a renewed recovery following their modest mid/late July pullback."
We see support in the mid/lower 1.34s, and look to a near-term range bound between 1.3450 and 1.3550."