The pound trades slightly higher on the day
Cable is trading a little higher at 1.2718 currently as the pound holds firm on the session so far. However, this isn't translating to much as buyers still have more work to do in order to sustain an extended momentum to the upside.
This week, price has so far failed to hold a firm break/close above the 23.6 retracement level @ 1.2707. That will remain the first resistance point to watch before we get to next level being the 27 May high @ 1.2753.
In the bigger picture, the pound remains very much tied to Brexit sentiment and the focus now is on the Tory leadership contest. This week, things are a bit stale as candidates launch their campaigns but expect things to pick up further in the coming weeks.
With Boris Johnson still likely to remain favourite to secure victory, it'll be a tough ask for the pound to pull off a solid rally in my view. Bloomberg also has a piece on that here with some firms expecting cable to hit a two-year low if the UK gets elected a prime minister who is an advocate of a no-deal Brexit:
