The British Pound (GBP) has shown a fractional increase against the US Dollar (USD), with market sentiment improving following Prime Minister Starmer’s resignation announcement on June 22. According to Scotiabank strategists Shaun Osborne and Eric Theoret, the GBP is a mid-performer among G10 currencies as attention remains focused on broader market developments, given the absence of significant domestic economic releases [1].
The strategists highlight that the recent recovery in sentiment is significant, reflecting market confidence in the wake of PM Starmer’s resignation. Additionally, the outlook for relative central bank policy is providing further support for the GBP, as markets have repriced the Bank of England’s (BoE) rate path in response to the latest rally in oil prices [1].
Technically, GBP/USD is making its first meaningful attempt to break above the 1.3400 resistance level, trading within a range of 1.3350 to 1.3450. These key levels align with the 50 and 200 day moving averages. The overall market sentiment is described as neutral to bullish, underpinned by the repricing of BoE rate expectations and the recent increase in oil prices [1].
Scotiabank expects GBP/USD to remain range-bound in the near term, between 1.3350 and 1.3450, as the market digests these developments [1].
CONCLUSION
The British Pound’s recovery is gaining traction, supported by improved sentiment after PM Starmer’s resignation and a repriced BoE rate path following the oil rally. While GBP/USD faces key resistance at 1.3400, the outlook remains neutral to bullish, with expectations for range-bound trading in the near term.