We open Buy positions for two reasons. Firstly, tonight the US Treasury will redeem $19.9 billion of Treasury bonds, which will increase the surplus of dollar liquidity in the financial system. During such periods, the dollar usually depreciates.

Secondly, a bullish rally in the oil market will provide additional support for the pound, inasmuch as assets have been historically correlated with each other. Investors are buying oil on the growth of “risk’s appetite”, as well as uncertainty about the nuclear deal on Iran.

Trading recommendation: Buy 1.4155/1.4125 and take profit 1.4236.