GBP/USD Range Trade Continues Ahead of Q2 GDP Release

The British Pound (GBP) has maintained its range trade against the US Dollar (USD), according to Scotiabank strategists Shaun Osborne and Eric Theoret. Despite modestly better PMIs, the fundamental backdrop for Sterling is fading, with 2-year spreads giving back gains since late June.

With limited data before the Q2 GDP release on August 13, the strategists remain medium-term bullish on GBP/USD. They expect it to trade within a near-term range of 1.3420 to 1.3520, which is part of a broader range between 1.31 and 1.35.

The pound has gained 0.1% against the USD ahead of Wednesday's North American session, with fractional improvements in final services and composite PMIs for July indicating marginal growth overall.