Scotiabank Pound To Dollar Outlook: Will GBP/USD Surpass 1.40?

Pound Sterling Rallies Against the US Dollar

This week, the British Pound has made significant gains versus the US Dollar, fueled by notable weakness in the greenback. The GBP/USD exchange rate soared to a high just above 1.3850, marking its strongest performance since September 2021, before settling slightly below the 1.38 mark.

Analysts at Scotiabank remain optimistic about the technical outlook for GBP/USD, suggesting that the currency pair could climb past the 1.40 threshold in the coming months—a level not seen since June 2021. Although the Federal Reserve kept interest rates steady at 3.75% as widely anticipated, the dollar has continued to face challenges due to persistent market concerns.