Alongside the antipodeans (and Japanese yen), the pound is the other notable gainer on the session as GBP/USD pushes up to the highs for the day at 1.2352 currently. The pair is turning things around after hitting a low just below 1.2300 in Asia trading, benefiting from the improved risk mood at the start of Europe.
With the BOE not among the shining candidates in the central bank tightening race, the pound has been forced to rely on the struggles of others to really benefit in recent times.
As an example, anything that typically pushes markets to pull away from the ECB and Fed i.e. lower inflation and the recent banking turmoil, is good news for the pound. It's just inadvertently, that also typically means good news for risk trades in the event of lower inflation that is - like what we are seeing today.
GBP/USD may be nearing its highest levels in eight weeks now but the bigger picture outlook is still rather benign.
There is still key daily resistance sitting around 1.2446 and unless buyers can break above that, there isn't much to really suggest a stronger break to the upside for cable.
The good news is that at least the downside is also more defined and limited by support around the region of 1.1800 to 1.1840 at the moment.
But eventually, something's gotta give and the technicals suggest that the next break on either side of the levels highlighted will arguably be quite a big trending one.
