For 3 days in a row, GBP has been confined in a relatively tight range between 1.3210 and 1.3330 with market makers dominating the edges amid lack of fresh Brexit news to latch on.
Other than the micro slope in the UK vs US bond yield spread, which has turned south, the rest of intermarket indicators (micro/macro DXY + macro yield spread) support the bullish bias.
Vol is set to pick up considerably from March 21st when the Brexit Summit gets underway. For the next 24h, as dynamics stand, engaging at the extremes of the range with the synchronicity of intermarket flows in one’s favor looks like the best course of action.
The only event, outside Brexit headlines, that should bring some minor injection of vol to the Sterling, is the publication of today’s UK employment report.