The Pound Sterling (GBP) is up a modest 0.2% against the US Dollar (USD) and outperforming most of the G10 currencies into Wednesday’s NA session, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

GBP looks set to push toward the 1.35 level

"Domestic data releases have been limited to the final manufacturing PMI (46.2, as expected), while comments from the BoE’s Mann have been neutral—hinting to a preference for a ‘longer hold on rates’. UK-US spreads are widening in a GBP supportive manner and we see scope for further gains as markets push out their expectations for BoE easing."

"The GBP’s technicals have shifted back to neutral as a fourth consecutive session of marginal gains have lifted the pound back to its 50 day MA (1.3464). The RSI is also drifting back toward 50 and GBP looks set to push toward the 1.35 level around which its flat multi-month range has been centered. We look to a near-term range bound between 1.3420 and 1.3520."