GBP a relative outperformer despite softer CBI data – Scotiabank

Pound Sterling (GBP) is soft, down 0.15% against the US Dollar (USD) while showing relative outperformance against the G10 currencies, Scotiabank's Chief FX Strategist Shaun Osborne notes.

Trend for GBP/USD is bullish

"Domestic data were weak, with CBI reported sales figures for May reflecting a sizeable deterioration. The near-term data release calendar remains limited and rate expectations remain steady, with markets pricing a minimal chance of a 25bpt cut in June and 39bpts of easing by December."

"The trend for GBP/USD is bullish, given the sequence of higher lows and higher highs, as well as the recent push to fresh multiyear highs. The momentum indicators are bullish, providing confirmation to the moves in the spot, and the RSI’s current reading of 64 leaves ample space for further upside. We look to near-term support at 1.35 and near-term resistance at 1.36."