Pound Sterling (GBP) is up 0.6% vs. the US Dollar (USD) and outperforming most of the G10 currencies, Scotiabank's Chief FX Strategist Shaun Osborne notes.
Signals are bullish but hint to caution
"The market tone is risk supportive which should allow participants to focus on data and this week’s employment (Tuesday) and CPI (Wednesday) releases."
"GBP/USD has recovered back toward its recent highs but has not pushed to fresh gains, despite an impressive five session rally. The signals are bullish but hint to caution as we note the negative divergence in momentum, with the RSI failing to confirm the latest gains in spot. We look to near-term resistance at 1.32 and look to support around 1.3050."
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