Cable up 40 pips
GBP/USD is up 40 pips to 1.3575, which is the best level of the day.
The big event this week is the Bank of England meeting on Thursday but expectations of a hike have fallen to just 12% from 97% a few weeks ago. Looking further out, there's only a 15% chance of a hike in June with the August meeting at 50/50.
So even if Carney doesn't hike but delivers a hawkish statement, there are upside risks for cable.
Technically, there is a good case to be made for dipping a toe in here as well. GBP/USD fell below the 200-day moving average on Friday but it rebounded to finish right at the 200-dam. Today it tested the level again and is up to 1.3570.
A target for a short-term bounce may be the early-March low of 1.3712, or just below.
