GBP Surges Against USD on Improving Sentiment

The British Pound (GBP) has been gaining ground against the US Dollar (USD), outperforming its G10 peers. According to a report by Scotiabank, improving sentiment is supporting this price action. Thursday's data release from the United Kingdom included preliminary Q2 Gross Domestic Product (GDP) figures and production numbers.

Short-term technical analysis suggests bullish conditions for the GBP/USD pair, with the Relative Strength Index (RSI) reaching fresh highs. Scotiabank strategists Shaun Osborne and Eric Theoret point to upside targets in the mid-1.35s to mid-1.36s.

The support level is seen near 1.3400, with a near-term range of 1.3480-1.3580 expected.