Cable touches a session high of 1.3125
Price is starting to break free from the 1.3100 level as buyers are keeping the upside momentum and are looking towards testing the 1.3150 region next.
As mentioned yesterday, the BOE announced a somewhat balanced hold with their decision - and left room for potentially no rate cuts should economic data swing back in their favour over the coming months.
A move in March is also highly unlikely given that the UK government will be announcing fiscal measures to prop up the economy two weeks before the BOE meets.
But any major extension may require the pound to rely on Brexit developments or more positive economic data down the road. Hence, I still view resistance around 1.3150 to 1.3200 as being key levels to keep the price momentum in-check.
In the bigger picture:
Price is navigating through a narrowing wedge with topside resistance seen at 1.3142. That is also a level to keep in mind in trading today.
