GBP/USD hits a fresh daily high above 1.3150 on end-of-month flows.

• Cable rises to fresh highs but fails to hold firm above 1.3150.  
• US dollar remains weak after yesterday’s FOMC meeting.  

The GBP/USD pair rose from 1.3105 to 1.3159, the new daily highs. Then pulled back as it was unable to extend the run on top of 1.3160. The move to the upside took place on the back of the London-fix that triggered soma volatility across the market. While the pound and the Swiss franc rose, the euro weakened.  

The London fix at the end of the month added pressure to the greenback and the euro. The US dollar continues to the among the weakest currencies after the FOMC meeting. The US central bank kept rates unchanged as expected but took a more dovish stance, reducing the demand for the greenback.  

In the UK, Brexit continues to be the key event. Meetings between UK PM May and members of the Parliament are taking place today. The date to leave the European Union is in 57 days. The parliament’s week-long recess in February has been canceled.

GBP/USD Levels to watch  

Cable is moving with a modest bullish bias, trading at 1.3140/45, up for the second day in a row. A firm break above 1.3150/60 could clear the way for a test of the next resistance seen around 1.3190 and then 1.3215 (Jan 25 high). On the flip side, a slide below 1.3125 (20-hour moving average) would expose the daily low at 1.3095. If the decline continues, a strong support emerges at 1.3050/55 (Jan 29 & 30 low).