GBP/USD: Strong rally eyes 1.35 – Scotiabank

Scotiabank strategists Shaun Osborne and Eric Theoret note that the Pound (GBP) is a strong G10 performer, gaining about 1.1% on sentiment-driven buying and pushing to the top of its late-February range. With no major United Kingdom (UK) data or Bank of England (BoE) events, they emphasize the break above the 200-day moving average and target the 50-day average and the 1.35 psychological level within a 1.34–1.35 range.

Pound outperforms with key technical breaks

"The GBP is strong, delivering an impressive 1.1% rally on the day with a performance that leaves it at the upper end of the G10 distribution."

"The pound’s sentiment-driven gains have delivered a push to the upper end of the range from late Feb."

"Domestic and fundamental developments remain limited with no major data releases and no BoE speaking engagements scheduled ahead of next Tuesday."

"The GBP&USD’s RSI is now pushing further into bullish territory and the break above 200 day MA (1.3416) is important."

"We look to the 50 day MA (1.3448) as the next major target, followed by the psychologically important 1.35. We look to a near-term range bound between 1.34 and 1.35."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)