Pound pairs rallied yesterday as E.U. and U.K. reached an important Brexit milestone. GBP/USD ran stops above 1.40 and is currently holding above the big figure. It's a big week for GBP data-wise, starting with inflation today, jobs tomorrow and retail sales on Thursday, along with BOE meeting and E.U. summit. 50 DMA has to hold if the momentum is to remain in place. In broader terms, 1.375 - 1.425 range still in play.
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GBP/USD supported ahead of the U.S. inflation report
U.K. and E.U. were said to be very close to Brexit implementation period deal yesterday, which prompted a 50 pip jump in GBP/USD. The pair is trading right at the January - February trendline. A successful breakout would lead to a retest of 1.40. If U.S. inflation report doesn't deliver today, it will make the job much easier.
GBP/USD recovers on Brexit optimism
GBP/USD jumped on news that Ireland and England are very close to a border deal. The pound has been almost entirely Brexit-headline-driven in the past couple of weeks. 1.325 - 1.33 should hold while talks are still in progress. On success, 1.40 will come back into focus.
GBP/USD settles near opening price on a volatile Monday
Quite some volatility for a Monday. Main beneficiary was GBP/USD which thrashed around on "Brexit lunch" headlines. Somewhat toppy price action since Friday may signal a period of consolidation near 1.35. I expect the pair to remain supported ahead of the European Council summit mid-month.
Cable still very much range-bound
British pound rose today in line with better than expected manufacturing/industrial production and some positive Brexit headlines. GBP/USD is still very much in 1.3025 - 1.3325 range, currently looking to extend it to the upside. 1.3350 is the initial target.