GBPUSD (1.2908): The cable posted moderately strong gains on Wednesday as price action rallied to spike higher to fill Friday’s close at 1.2959. Price action pulled back. Fundamentals were supportive of the jump with the news about Brexit talks and the services PMI. In the near term, we expect to see a firmer retest around 1.2959 region before the cable is expected to give up the gains. Strong support formed at 1.2808 which could be tested. We continue to watch for the head and shoulders pattern to evolve. A break down below 1.2808 could send the cable down to 1.2685 as the minimum measured downside target.
