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The pound was given a further boost, as the EU’s top negotiator Barnier provided some positive soundbites but GBP/USD remains capped by the 1.24 level. Terence Wu, an FX strategist at OCBC Bank, is looking to the downside, specifically to the 1.2350 mark.

Key quotes

“Some positive soundbites from Barnier allowed the GBP/USD to lift higher. It is nevertheless capped by the 1.2400 ceiling for now.” 

“We don’t think the dynamics in the EU-UK trade talks have fundamentally changed, and we still stay negative on the cable.” 

“For now, watch 1.2450 on the topside, although 1.2350 may still implicitly attract.”