GBP flat ahead of data later this week – Scotiabank

The Pound Sterling (GBP) is entering Wednesday’s NA session with a marginal gain vs. the USD as it consolidates in a tight range just above 1.3500, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

Fundamentals remain supportive

"There have been no fundamental releases and this week’s highlights remain the trade and industrial production data scheduled for Friday. Fundamentals remain supportive for the pound as UK-US yield spreads push to fresh highs and sentiment is confirming as the options market reveals a positive shift in the price of protection against GBP risk."

"The technical picture remains bullish following this week’s break of descending resistance drawn from the summer highs. Momentum is confirming, with an RSI in the mid-50s, and this week’s gains are threatening a push to levels last seen in early July. We see no major resistance ahead of 1.3750 and look to a near-term range bound between 1.3500 and 1.3600."