GBPUSD (1.3593): The British pound rallied strongly after rate hike expectations from the BoE found renewed optimism. GBPUSD close at 1.3588 by Friday’s close. The cable now remains within a few pips short of filling the gap at 1.3677 from the June 2016 Brexit event that saw prices gapping lower. We do expect this rally to 1.3677 to be a touch and go event as the GBP is likely to take a breather in the short term. Support is now seen at 1.3236, exposing a large downside risk to the currency pair. Economic data from the UK this week is limited to only the retail sales numbers on Wednesday and of course the FOMC meeting later in the day.
