Sterling consolidated gains on Thursday after rocketing to a 11-week high overnight on growing optimism that British lawmakers would be able to avoid a no-deal Brexit.
While a firmer dollar prompted currency traders to book some profits after a more than 2.3 percent rally in the pound so far this month, various market position indicators and derivative market signals are indicating more pound bullishness for now.
On Thursday, the British currency edged a fifth of a percent lower at $1.3038 after briefly scaling a 2-1/2 month high of $1.3094 in the Asian session.
It was trading just below a key market level of $1.3071, the 200-day moving average for the pound, a level it hasn’t traded above since May 2018.
The pound has been the biggest gainer this month in the G10 currency universe with its peers such as the dollar and the euro dogged by concerns of a spreading slowdown in the global economy.
Against the euro, the pound was slightly weaker at 87.05 pence.