GBPUSD daily
A worrisome candle is shaping up on the daily cable chart. The pair rose to the highest since September 14 today at 1.2428 but it’s since given back all the daily gains in a fall to 1.2371 as is trading fractionally lower.
The Bank of England last week followed the Fed to the sidelines but the pound has benefited from a broadly weakening US dollar and positive risk appetite.
US equities are trading slightly lower today after small losses in Europe. That comes with Treasury yields rebounding 7-9 bps across the curve today.
Overall, I wouldn’t be too worried about the pound or the intraday reversal yet. The moves last week were big so some back-and-fill now isn’t surprising.