Scotiabank strategists Shaun Osborne and Eric Theoret report the British Pound (GBP) is softer against the US Dollar (USD) but relatively resilient versus G10 peers, with declines tied to shifting Fed expectations and softening United Kingdom (UK) yields after moderating inflation and a weak services PMI. Short-term GBP/USD technicals are bearish, with oversold RSI, little support ahead of 1.30, and a projected 1.3100–1.3200 near-term range and minor resistance above 1.3250.

Pound pressured by softer yields, data

"The pound is soft, down 0.3% vs. the USD and a relative performer against most of the G10 currencies."

"Fundamental releases have been limited, and much of the GBP’s latest decline also appears to be driven by the adverse shift in yield spreads with movement largely driven by the shift in expectations for the Fed."

"Domestic yields have also been softening however, reflecting the recent moderation in inflation data as Tuesday’s unexpected contractionary print in the services PMI."

"GBPUSD short-term technicals: Bearish—the RSI is at the oversold threshold at 30, and spot’s decline has cleared the prior 2026 low offering little in terms of near-term support ahead of 1.30."

"We now see minor resistance above 1.3250 and we look to a near-term range bound between 1.3100 and 1.3200."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)