GBP fades modestly from fresh multiyear high - Scotiabank

Pound Sterling (GBP) soft, down 0.3% against the US Dollar (USD) and trading in tandem with EUR in an environment of broad-based USD strength, Scotiabank's Chief FX Strategist Shaun Osborne notes.

GBP/USD trend remains bullish

"The pound reached a fresh high late in Monday's NA session, reaching levels last seen in February 2022. The domestic release calendar is limited and the scheduled BoE speakers are likely to generate any market-moving headlines given the broadly consistent message of easing and a fullypriced 25bpt cut for the May 8 BoE policy meeting."

"The BoE will also release a fresh set of forecasts and likely provide some initial analysis around US tariffs and their risks to growth and inflation."

"The bull trend is intact and has been reinforced by GBP's push to a fresh multi-year high in the mid-1.34s. Near-term resistance is now expected closer to 1.3750, followed by the psychologically important 1.40 level. Near-term support is expected in the mid-lower 1.32s. Momentum is also bullish, with an RSI in the mid-64s."