The Cable is attempting to correct a bearish move and is trading 0.18% higher on the day so far. GBP/USD has travelled from a low of 1.3402 to a high of 1.3449, scoring to the high in recent trade as bulls take on daily resistance with 1.3480 eyed.
The pound has been edging higher at the start of the week even though post-Brexit trade agreements for Northern Ireland remain at risk. Relations between the UK and EU have been sensitive due to the brinksmanship over the Britain’s warnings to activate an emergency clause known as Article 16 of the Northern Ireland Protocol. The British pound is especially vulnerable as the prospect of a trade war is an outcome that would be expected to leave the UK worse off.
European Commission’s Maros Sefcovic said the EU will consider all the tools at its disposal if the UK Government triggers Article 16. ”If the British Government suspends the Northern Ireland Protocol, it will have “serious consequences” for the region and Brussels’ relationship with the UK.
Looking forward, the US monthly Retails Sales will be released in the afternoon and that is going to give a way of direction to the Cable.
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