GBPUSD consolidates below major resistance in the mid-1.15s. Economists at Scotiabank expect Sterling to struggle to see further gains.

Short-term support looks firm at 1.1425/35

“Higher rates plus some – likely significant –fiscal retrenchment to be unveiled by the Chancellor next week suggest even stiffer growth headwinds (beyond the cost-of-living crisis) for the UK economy in the months ahead.”

“Sterling may struggle to extend gains against a soft USD and seems liable to remain weak on the crosses at least until the extent of Chancellor Hunt’s plans is revealed.” 

“Short-term support looks firm at 1.1425/35 intraday.”

“Major resistance lies above the market at 1.1550/60 – recent peaks and major trend resistance off the early 2022 high. This may contain GBP gains in the short-run – unless the USD weakens more significantly.”