GBP as an average interpreter while markets await the discourse of the BOE – Scotiabank government

The sterling pound (GBP) has risen 0.8% against the US dollar (USD) and is a lower relative yield compared to its Chf, EUR and SEK European currency pairs. The GBP profits threaten the maximum of September 2024, and a break would see its price at levels not seen since the beginning of 2022, says Shaun Osborne, head of FX strategy in Scotiabank.

The next significant resistance level is expected to be around 1.35

“The culminating point of this week’s data will be the publication of the preliminary PMIS on Wednesday and retail sales on Friday. The governor of the BOE, Bailey, will also speak on Wednesday, providing an opportunity to manage expectations before the next policy decision on May 8. The markets are currently valuing 21 basic reduction points for the meeting and a cumulative reduction of 50 basic points for the beginning of August.”

“The strong GBP/USD profits have led it to new local maximums close to 1.34 and within the near reach of September 2024 in the middle/low zone of 1.34. The impulse is bullish, and the RSI is just above the overcompra threshold in 70. The next significant resistance level is expected to be around 1.35. The short -term support is expected to be 1.32. “

Source: Fx Street

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