### POV: Brexit Transition Agreement Sees.....>

CABLE: ### POV: Brexit Transition Agreement Sees GBPUSD Breaks 1.40, Where Next?

- 1.40 had been a key resistance level which held in previous sessions. News

that the UK & EU have agreed on a large part of the transitional agreement

triggered fresh bullish signals with GBPUSD now looking to mid-Feb highs of

$1.4145.

- Sterling has a big data week ahead with UK CPI, Labour report, Retail Sales,

BoE policy meeting and key transitional Brexit talks.

- Core CPI is expected to slow to 2.5% on base effects from transport and food.

Retail Sales are anticipated to show a modest increase on the m/m reading with

growth from CBI and Visa expenditure data filtering through.

- The BoE is expected to leave policy unchanged with main focus on the language

going forward. MNI Pinch prices in a May hike at 82%, more interestingly, a

second hike in November has now increased to 60%.

RISK - The stumbling block remains the hard border in Ireland, any further

delays will inevitably be risk negative and pressure sterling in the short-term.