GBP/USD: Upside bias with limited resistance – Scotiabank

Scotiabank notes the Pound is up 0.3% versus the Dollar, trading at pre‑conflict highs as investors welcome strong demand for UK debt. Domestic data risk is light before trade and industrial production, while BoE speakers, including Gov. Bailey, pose event risk. Technically, GBP/USD shows bullish RSI, with support below 1.3450 and scope toward mid‑February highs near 1.37.

Pound supported by issuance demand and BoE risk

"The pound is also entering Wednesday’s NA session with a 0.3% gain and extending its latest recovery to fresh local highs at levels that last prevailed ahead of the US/Iran conflict."

"Domestically, market participants are cheering strong demand for UK debt issuance, with sizeable orders for both Treasury offerings and those of large financial institutions."

"Data risk remains limited ahead of Thursday’s trade and industrial production figures, while BoE risk has returned with comments from the MPC’s Mann—stressing a need to ‘be active’ whether ‘that means [a] big rise or cut or long hold’."

"Bullish—the RSI is now firmly in bullish territory and pushing above 60, as spot extends its recovery to fresh local highs above 1.35."

"We see limited resistance between current levels and the mid-Feb peaks around 1.37 and now look to support below 1.3450."

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