GBP/USD consolidates weekly gains, eyes 1.2400

The pound gained momentum across the board near the end of the American session and moved toward daily highs against the US dollar and extended gains versus the euro. 

GBP/USD rebounded at 1.2330 and recovered strength. Recently it broke above 1.2375 and approached to 1.2400. Still remains below daily highs it reached earlier at 1.2397. Traders are awaiting the press conference following the Merkel/Trump meeting. 

Live Stream – Trump/Merkel joint press conference

Best week since January

Cable is consolidating weekly gains. The performance of the last five days has been the best since January. GBP/USD continues to face bearish pressure from a technical and fundamental perspective. The imminent start of the Brexit process and the rate hike in the US have been affecting the pound. The Article 50, which formally starts Brexit, is likely to be triggered between March 27 and 30. 

The sterling rose sharply in the market after yesterday’s minutes from the Bank of England showed one vote in favor to raise rates. 

Regarding data, newt week in the UK the most relevant reports will be CPI on Tuesday and retail sales on Thursday.  “Despite increasing inflation, we stick to our long-held view that Bank of England will remain on hold for a long time, as Bank of England puts more weight on growth/labour market data than inflation”, said analysts from Danske Bank.