The British pound sterling on the third trading day of the week, January 23, resumed the strengthened upward movement and overcame the first resistance level of 1.3024
The Bank of Japan confirmed its intention to continue buying Japanese government bonds and left the short-term interest rate unchanged at minus 0.1 percent.
It seems that investors have decided to sit aside until the announcement of the meeting of the European Central Bank. The EUR / USD pair is almost immobilized. Meanwhile, the completion of QE in the old world and the reduction of political risks around Italy contribute to an increase in non-resident demand for bonds issued in Europe.
The British pound rose against the backdrop of strong data on the labor market and despite the problems around Brexit. It's not entirely clear why traders did not disappoint Theresa May's backup plan, which is practically a copy of the original plan.
Many predicted the euro growth for the foreseeable future last year, relying on the rise in German government bonds yields, a pause in the Fed's monetary tightening cycle and a possible increase in interest rates from the ECB.
Shall the GBP/USD hold its bullish breakout above 1.3000 ?
If so, a quick bullish advance towards 1.3155 should be expected.
Otherwise, a false breakout would result in a corrective movement again towards 1.2800.
Statements by the Minister of Commerce of Great Britain saying that it was impossible to work out and implement the deal by March 29 led to the strengthening of the pound in the first half of the day
