GBP/USD gathering pace for a test of 1.3220 ahead of Carney

The GBP/USD pair continuous to trade cautiously around the 1.32 handle, as the bulls await fresh Brexit-related headlines for a retest of three-month highs at 1.3217 reached last Friday.

Focus on UK Parliamentary vote on Brexit Plan B

Having faced rejection just shy of the multi-month highs above the 1.32 handle in early Asia, the spot retreated to 1.3190 levels before entering a phase of bullish consolidation, as markets digest the latest Brexit-related developments, with the Irish Foreign Minister Coveney having expressed no need for further compromise on the Irish border backstop.

Meanwhile, the sentiment around the pound also remains buoyed by the Sun News report, citing that the UK PM May privately told the Cabinet she will rule out a no deal Brexit.

The ongoing upbeat momentum around the Cable found extra legs on Friday following the reports that the Northern Irish Democratic Unionist Party (DUP) decided to privately agree to support UK PM May’s ‘Plan B’ Brexit Deal.

Adding to it, the US dollar was broadly sold-off into a Dow Jones Newswires report that suggested the Fed would pause its balance sheet normalization sooner than expected.  Moreover, dovish expectations from the FOMC decision due to be announced on Wednesday also keep the USD bulls on the back foot.

Looking ahead, the UK Parliamentary vote on the amendments to the UK PM May’s Brexit Plan B due tomorrow will remain in the spotlight, keeping the GBP traders on the edge. In the meantime, the BOE Governor Mark Carney’s speech due later today at 1430 GMT will be closely eyed for near-term trading impetus.

Carney is likely to participate in a question and answer session, along with other MPC members, about the future of money at the Bank of England's Future Forum, in London.

GBP/USD Technical Levels