No headline catalyst behind the move
The US dollar is under some modest pressure but aside from that, there is no clear reason for the latest pop in GBP/USD.
The pair ran some stops above yesterday's post-vote high of 1.2905 and continued to inch forward. We're now at the 50% retracement of yesterday's range. Watch 1.2940 resistance and a potential break of it as a signal of more gains to come.
There are only two outcomes that I can see from the Brexit drama: An election and a deal through parliament. The market would prefer a quick deal but Boris might prefer an election. However if there is an election, Boris is going to campaign on his deal and I think that's a winning formula. The whole world is tired of Brexit and wants to get-on with it.
