GBP advance lags core peers – Scotiabank

Despite intraday gains, Sterling has underperformed its G10 counterparts this week, according to Scotiabank’s Chief FX Strategist, Shaun Osborne. February UK GDP exhibited robust growth, increasing by 0.5% month-over-month, exceeding the projected 0.1% rise. This expansion was primarily driven by gains in the services and construction sectors, alongside a significant surge in manufacturing output (+2.2%).
While GBP has faced headwinds this week, dips have encountered strong support below 1.27. A firm weekly close, potentially above 1.30 for the first time since October, suggests further appreciation is possible in the near term. Resistance is observed at 1.32, with a break above targeting 1.34. Support lies at 1.2975/00.