GBP quietly consolidating recent push to multi-year high – Scotiabank

Pound Sterling (GBP) is soft, trading down a modest 0.1% against the US Dollar (USD) and a mid-performer among the G10, Scotiabank's Chief FX Strategist Shaun Osborne notes.

Multi-month trend is bullish

"GBP appears to be consolidating following Monday’s push to a fresh multi-year high, lacking any meaningful domestic catalyst in a relatively quiet week, data wise. Next week’s calendar also offers little, with third tier data and a few scheduled BoE speakers."

"This week’s BoE speeches were generally cautious on growth with mild-concern about inflation as Gov. Bailey said that ‘we have been predicting this hump in inflation for a long time’ and spoke to concerns about second round effects."

"The multi-month trend is bullish and GBP/USD has continued its push to fresh multi-year highs, nearly reaching 1.36 on Monday. Momentum is also bullish, with an RSI close to 60 leaving ample room for further gains ahead of the overbought threshold at 70."