The pound is the best performing major currency so far today
Cable is at session highs now of 1.2985 as price looks to hold a break above the 200-hour MA (blue line) @ 1.2973 with buyers attempting to seize near-term control of the pair.
EUR/GBP is also seen falling towards 0.8360 now and that is helping to give momentum to the pound in European trading today.
For cable, there is resistance around 1.2990-00 with the key near-term trendline resistance level also seen at the figure level. Further resistance is seen towards the 19 February high @ 1.3023 next if the figure level gives way.
Just be mindful that the UK will be unveiling its post-Brexit trade negotiating mandate on Thursday so that will be a key risk event for the pound this week.
Both the UK and EU are still largely posturing ahead of trade talks, that will begin next month, and both will want to draw a hard line over what they are willing to offer and compromise ahead of negotiations.
In my view, the risk presented on that front is asymmetric - favouring the downside - for the pound and the bias would be to keep shorts on 1.3000 to 1.3050 with only a break of 1.3070 likely to be the trigger for a bigger upside extension.
