GBP/USD fades a spike to 1.3100 ahead of Carney’s speech

• Jumps amid risk-on rally in equities, as Europe cheers US-China trade progress, Trump’s postponement of tariff hike deadline
• Bullish bias intact amid a broadly weaker US dollar, DXY hovers near daily lows.
• Will it regain the 1.3100 barrier on BOE Governor Carney’s speech?

The GBP/USD pair broke its overnight bullish consolidative mode and jumped to daily tops just shy of the 1.31 handle on the European open before quickly reversing nearly 30 pips to now trade in the familiar range near 1.3065 region.  

GBP/USD: Carney’s speech and Brexit news in focus

The latest uptick in the spot was mainly driven by a fresh lift in the risk appetite, as the European traders hit their desks and cheered the US-China trade optimism amid the US President Trump’s pushing out of the March 1 tariff increase deadline. 

Moreover, the recent reports that the UK government is considering delaying Brexit by two months also collaborated to upbeat tone seen around the Cable. Meanwhile, the pair also derives support from broad-based US dollar weakness, as the safe-haven appeal for the greenback dulled amid the risk-off action in the global equities amid trade progress.

However, the major quickly faded the uptick, as the bulls await further Brexit-related headlines for the next push higher. Also, markets digest the latest chatter doing the rounds that cite the UK Labour Party Jeremy Corbyn will announce something later today, which perhaps could support for a second referendum.

Further, the pair awaits the speech by the Bank of Governor (BOE) Mark Carney, due at 1000 GMT, for further trading impetus while the USD dynamics and risk trends will continue to remain the main drivers today.

GBP/USD levels to watch