The GBPUSD pair is trading around 1.2900, supported by optimism in US/China trade talks. Powerful rally on Friday left double bottom at daily cloud top and shaped bullish outside day. Therefore Cable is showing signs of reversal.
The European markets are trading little changed at the beginning of a new week, as the sentiment stays undermined by worries over the global economic slowdown that has restored some bids in the USD over its main rivals.
Yet, the GBP bulls immediately recaptured control after the UK Cabinet Office Minister Lidington noticed that the UK government is having valuable talks on Brexit with Brussels, as markets wait the result of the meeting between the UK Prime Minister Theresa May and the European Commission President Jean-Claude Juncker booked later today.
Looking forward, the pair will keep on following of incoming Brexit headlines in the midst of an absence of relevant economic news and the President’s Day and Family Day respectively in the US.