GBP/USD: stable on 1.20 post Carney, but fragile ahead of PM May

Currently, GBP/USD is trading at 1.2055, down -1.08% on the day, having posted a daily high at 1.2087 and low at 1.1987.

GBP/USD is muted after Carney's speech that was overall pretty bearish on the UK economy and outlook for sterling, but the main event will come tomorrow when PM May offers some guidance on Brexit and while the weekend news was hard-line hard Brexit speculation, tomorrow should offer some clarity one way or the other.

BoE's Carney: Brexit effect on GBP and economy will be "somewhat uncertain" over next few years

The dollar has picked up some bids at the start of this week and the market remains long on speculation that Trump will provide a foundation for a stronger dollar during, at least, his first 100 days of presidency although, so far, 2017 has not been kind to the dollar and much of the reflation trade and FOMC fuelled bullishness has started to diminish the pre holiday bid in the greenback - we are just days away from Tumps inauguration and there are plenty of risks to follow making for fragile foundations for both the pound and the US dollar.

Brexit: what we do and what we don't know yet - Nomura

GBP/USD levels

Spot is presently trading at 1.2056, and next resistance can be seen at 1.2068 (Daily Classic S2), 1.2069 (Hourly 20 EMA), 1.2087 (Daily High), 1.2121 (Yesterday's Low) and 1.2122 (Annual Low). Support below can be found at 1.2044 (Weekly Classic S1), 1.2015 (Daily Classic S3), 1.1988 (Daily Open), 1.1987 (Daily Low) and 1.1901 (Weekly Classic S2).