GBP extends rally for seventh session – Scotiabank

Pound Sterling (GBP) is up 0.3% vs. the US Dollar (USD) and a mid-performer among the G10 currencies as it extends its gains for a seventh consecutive session and pushes toward its prior (September) highs around 1.34, Scotiabank's Chief FX Strategist Shaun Osborne notes.

Trade détente is GBP positive

"The CPI release for March disappointed slightly on headline (2.6% y/y vs. 2.7% y/y exp.) and was as expected on core (3.4%). Trade tensions also remain a critical driver for GBP."

"GBP/USD’s gains have extended for a seventh consecutive session and momentum remains bullish with an RSI near the overbought threshold at 70. We look to near-term resistance around 1.33, and beyond that, the September high around 1.34. Near-term support is expected between 1.3220 and 1.32."