GBP edges towards 1.36, strongest since early 2022 – Scotiabank

GBP edges up towards 1.36, strongest level since early 2022 – Scotiabank

The British Pound (GBP) is slightly firmer on the day, continuing its bullish trend against the US Dollar (USD). GBP/USD ("Cable") approached the 1.36 level in overnight trading—its highest since early 2022.

According to Scotiabank analysts, there was no notable news over the weekend and no key data releases today. Markets have effectively priced out the possibility of a rate cut at the Bank of England's June 19 policy meeting. Only second-tier survey data are expected this week, which are unlikely to significantly alter market expectations.

Technically, the bullish trend remains strong, with the Directional Movement Index (DMI) oscillators aligning across intraday, daily, and weekly timeframes. This suggests limited room for counter-trend moves and strong support on minor pullbacks. Immediate support is seen at 1.3545/50, while resistance lies at 1.3595/1.3600, followed by a potential move towards 1.3740/50 if momentum continues.