The pound is currently trading at around £1.2323 versus the dollar. Key resistance now sits at £1.2343. Gov Bailey due to speak at 09:45 GMT.

The pound is currently trading at around £1.2323 versus the dollar. We can see a nice rally on the 4-hourly timeframe since last Friday, key resistance now sits at £1.2343 which is highlighted by the red oval. A break above this point could see the pound edge higher towards the £1.24 mark. Support is established below along the trendline, with support sitting at £1.2279 followed by key support sitting at £1.2260 (along the trendline). A break below this support level may see the price of the sterling dip further towards £1.2190. MACD has turned positive and RSI is already positive as it reads 65. The pound has gained some of the momentum from the hawkish remarks from Governor Bailey, who is actually due to speak today at 09:45 GMT.