GBP tracks broader tone in the USD to regain 1.30+ – Scotiabank

Pound Sterling (GBP) retains a firm tone versus the USD, reaching the 1.30 level for the first time since November before drifting back slightly, Scotiabank's Chief FX Strategist Shaun Osborne notes. 

Solid trend momentum signals across a range of timeframes

"Again, GBP gains reflect the broader trend in the USD, rather than UK specific developments. Markets anticipate marginally less BoE easing risk over the balance of the year (around 50bps) versus the Fed (around 60bps of easing priced in currently) ahead of this week’s policy decisions from both central banks." 

"The GBP has made marginal technical progress over the past 24 hours but the move up remains well-supported from a technical point of view (solid trend momentum signals across a range of timeframes) and there is only minor resistance ahead (1.3045/50) of a push on to test the low 1.31 area (retracement resistance at 1.3120). Support is 1.2925."