GBP nears 1.36, highest since early 2022 – Scotiabank

Pound Sterling (GBP) is modestly firmer on the session, Scotiabank's Chief FX Strategist Shaun Osborne notes.

Strong GBP bull trend develops

"There were no major developments of note over the weekend and no data releases today. Markets have priced out all but any risk of a rate cut at the June 19th BoE decision. There are only second-tier survey reports due over the rest of this week which are unlikely to shape market expectations to any significant degree."

"Cable traded a little shy of 1.36 in quiet overnight trade, its highest since early 2022. Minor resistance at 1.3595 may cap the pound in the short run but the bull trend here looks solid as well."

"There is a clear alignment of DMI oscillators across the intraday, daily and weekly studies which suggests limited scope for counter-trend corrections and firm support on minor dips. Support is 1.3545/50. Resistance is 1.3595/00 ahead of 1.3740/50."