Barclays Capital FX Strategy Research notes that GBP/USD has been pushed above the psychological 1.30 level on higher-than-expected retail sales last week combined with USD weakness.
“Although GBP remains on an appreciating trend, with market positioning and valuation providing a boost, further near-term upside will likely require a catalyst, in our view. Baring further unexpected negative political headlines from the US, we do not think this week will provide such catalyst and expect the Cable to range-trade,” Barclays argues.
Data wise, Barclays notes the calendar is quiet this week, and expects Q1 17 GDP (Thursday) to be confirmed at 0.3% q/q.
GBP/USD is trading circa 1.3022 as of writing.