Pound Sterling Faces $1.36 Ceiling as Scotiabank Warns of Resistance

The British pound's recent recovery against the US dollar is facing a significant hurdle at around $1.36, according to Scotiabank's currency strategists.

The analysis suggests that while sterling has shown resilience in the near term, its upside appears limited by technical resistance and fundamental headwinds.

The weaker US dollar and expectations of a more cautious approach from the Bank of England have provided support for the pound, but the UK economy's sluggish growth outlook and persistent inflationary pressures continue to cap its gains.