GBP/USD is at session highs of 1.3613, moving towards the 2017 high of 1.3657
The lack of Brexit news seems to be a welcome note for traders as we start the year. I pointed out yesterday here that a move higher can't be ruled, as the momentum for the pair over the last week has been relatively solid.
It looks like at this point the pair is heading towards a test of that high. Though, there are some key risk events to look out for. Today, we have UK construction PMI numbers, and tomorrow we have the UK services PMI numbers due. Adding to that, on the US front we have ISM manufacturing PMI numbers today, followed by ADP employment change numbers tomorrow, and lastly non-farm payrolls on Friday.
Be on the look out for those data points, as they could muddy up the picture that we're seeing on the charts now.
Adding to the sterling's case, EUR/GBP has fallen a little over the past two days after failing to break above the 38.2 retracement level and the 100-day MA (red line) as seen on the daily chart:
