Pound Sterling Stalls at $1.36 as US Dollar Recovery Hints at Resistance

The British pound's recent recovery against the US dollar may be facing a ceiling near $1.36, according to currency strategists at Scotiabank.

While sterling has shown resilience in the short term, its upside appears limited by technical resistance and fundamental headwinds.

A weaker US dollar, which has retreated from recent highs as investors reassess the Federal Reserve's policy path, has provided some support to the pound. However, the UK economy's sluggish growth outlook and persistent inflationary pressures continue to cap sterling's gains.

Scotiabank notes that any move toward $1.36 will likely attract selling interest due to its historical significance as a psychological and technical resistance point.