GBP/USD near the highs of the day
Cable bulls have been beaten so many times in the past three years that every breakout looks like a fakeout.
There was an opportunity for the recent rally to collapse into profit taking today but after the early hiccup, the pound rebounded. The high in Asia was 1.2757 and if it can close above it, that would be particularly bullish. If not, there's the threat of an intraday double-top.
Even after the current level, it's an outside day.
The fear at the moment is that the Fed tomorrow says that things are looking better and that's taken as a hint that some of the current programs are tapered. If so, the dollar will soar and risk assets will get crushed.
If Powell says the economic damage is still uncertain and the Fed is still prepared to do more, then the coast is clear for 1.30+.
