British Pound: Sentiment supports further gains against US Dollar – Scotiabank

Scotiabank strategists Shaun Osborne and Eric Theoret report that the British Pound (GBP) is flat versus the Dollar but outperforming G10 peers despite broad USD strength. With data light, attention turns to PM Burnham’s visit to Kiev and the October 28 budget. Improved sentiment is visible in options markets, and they see scope for GBP/USD to advance toward the 2026 high in the upper‑1.38s.

Pound outperforms on crosses

"The pound is entering Monday’s NA session nearly unchanged vs. the USD while outperforming all of the G10 currencies in an environment of broadbased USD strength. The release calendar remains empty and near-term focus appears to be centered on PM Burnham’s visit to Kiev."

"Fiscal developments have been limited but media are already tightening their focus on the autumn budget scheduled for October 28. Measures of sentiment have revealed a material improvement in the market’s mood toward the GBP, with steady gains observed in risk reversals as the options market has faded the premium for protection against downside risk. We see scope for further gains toward the 2026 high in the upper1.38s."

"Bullish – as with EUR, the GBP’s RSI is hovering around the overbought threshold at 70 and just off last week’s peak."

"Recent price action has revealed resistance above 1.3650 and we see limited additional resistance between current spot and the 2026 peak in the upper-1.38s."

"We see near-term support at 1.3600 and 1.3550."

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