As Lilac points out, Cable is trying to break above important resistance in the 1.6125/30 region after forming a near-term base in the 1.5770 region.
To my mind, a sustained GBP rally will come with a USD rebound as well. The last shall be first, the good book tells us. I’d expect any EUR/USD retrenchment to be coupled with a EUR/GBP dip as well.
A support to cable today was the fact that the BOE refrained from extending their QE program. It will be extended next month, recent MPC refugee Danny Blanchflower said, this morning, but the pound is getting a bit of a relief rally near-term.
