GBP/USD trades firm in mid-1.23s. Economists at Scotiabank expect the pair to retest the late 2022/early 2023 peaks at 1.2445.

Foreign investors remain wary of Gilts

“Foreign investors remain net sellers of UK government bonds. Net outflows were much smaller than Jan record net exodus (GBP28 bn) but the trend remains a concern after the late 2022 volatility in UK markets. The data had no impact on the GBP’s intraday performance, however.”

“GBP/USD gains are pressuring last week’s peak at 1.2342; trend oscillators are bullishly aligned across a range of timeframes making a retest of the late 2022/early 2023 peaks at 1.2445 a likelihood in the near future, provided that strong trend support on the intraday chart at 1.2290 remains intact.”