GBP/USD consolidates gains above 1.2900, Pound among top performers

• Pound outperforms  despite UK political headlines.  
• GBP/USD holds firm above 1.2900, 150 pips above last week lows.  

The GBP/USD pair is consolidating gains and remains near the highs, holding above 1.2900. Earlier today, it climbed to 1.2937, the strongest level since last Wednesday.  

During the last hours, it has been moving sideways, in a small range between 1.2910 and 1.2932. The pound is holding firm to daily gains and is the top performer among majors.  

The move higher took place amid a slide of the US dollar across the board. Political development in the UK had no impact on the pound. Today, seven members of the Parliament quit from the Labour Party to form an independent group.  

Regarding Brexit, the uncertainty still prevails. Comments from Minister David Lidington, saying that the UK government might be able to re-negotiate the deal with the EU or delay Brexit, favored the pound modestly.  

Volatility is expected to continue subdued in the wake of the President’s Day holiday in the US. The greenback is posting mix results on Monday.  

Tomorrow in the UK, jobs data will be released. “We estimate the unemployment rate (three-month average) was unchanged at 4.0%, but it is probably a close call as to whether it fell to 3.9% or not. We estimate average weekly earnings ex bonuses (three-month average) were 3.3% y/y higher than in December 2017,” wrote analysts at Danske Bank. In the US, the next key even will be on Wednesday, with the release of the FOMC minutes.  

Technical Levels