GBPUSD (1.4015):The British pound was seen pausing its rally following Monday’s news about the transitory Brexit deal. The weaker inflation data did not help the sterling much as price action was confined to Tuesday’s range. Support at 1.3902 remains in play and we expect to see this level to be tested in the near term. The UK’s labor market data will of course bring some volatility ahead of the Fed meeting. In the near term, GBPUSD is likely to maintain the range of 1.4060 – 1.3902 level ahead of the Bank of England meeting that is due on Thursday.
