GBP/USD hits a four-month high
Alright, this is where things start to get a bit stretched in my view. The gains today is basically signalling that markets are pricing in some form of positive news to come about from May's statement later just after midday. Currently, the hope is for either a Brexit extension or that May rules out a no-deal Brexit outcome.
Either of which will more than likely help support gains seen today but should neither come about, it will just be a pain trade that is waiting to happen.
There is some decent resistance for cable around 1.3250-60 before the 1.3300 handle but at this point it's purely sentiment that is dominating trade here. Technicals will mean little if the sentiment seen here is supported by fundamentals. Cable could easily take out 1.3300 on the back of positive headlines later.
But that is very much the case, it's either the pair is going to rally further from here or the gains today will be tempered with depending on May's statement.
Meanwhile, EUR/GBP is also opening up to new lows as the pair falls below 0.8600 to its lowest levels since May 2017.
