The British pound is surfing on waves of positive news on the Brexit front. Reports that Prime Minister May would seek to delay the withdrawal process, possibly into the month of May has heightened the possibility of an orderly Brexit. The Premier is expected to address the parliament today and formally scrap the no-deal scenario in an attempt to gather support. This could be a tremendous catalyst for the pound’s rally.
On the technical side, GBPUSD is rallying towards the January high of 1.3210. The break of the 1.31 resistance indicates a strong bullish momentum. On the downside, 1.3125 is a key support in the short-term.
The sentiment-price correlation chart shows the sentiment in the positive territory. We could expect renewed enthusiasm as price rallies further.