The Cable is strengthening Monday after Barclay’s said its operations continue to outperform.  The UK bank’s shares soared 22% during the European trading session.

Additionally, the Cable is finding encouragement in the EU’s stable CPI report coupled with its positive correlation with U.S. equities.  The S&P futures are pointing towards another positive open for the U.S. equity markets.

However, the GBP/USD is experiencing some profit-taking right now as it encounters March highs and the dense trading range dating back to late January.  We won’t see any economic data from Britain until Wednesday. 

Therefore, the Cable will likely rely on its positive correlation with the EUR/USD and U.S. equities for the next two days.  Fundamentally, we find resistances of 1.4199, 1.4264, 1.4307, and 1.4354.  To the downside, we see supports of 1.4156, 1.4112, 1.4047 and 1.4008.   The GBP/USD is currently exchanging at 1.4188.

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