GBP/USD has a mountain to climb and it is not looking good

The GBP/USD tried to make progress yesterday, but after many attempts it once again stalled short of 1.3550. The Pound set a synthetic US close last night at 1.3541. Earlier this morning, just as the European markets got underway, the GBP/USD spiked to 1.3553, but it has not been able to sustain the move and the suspicion here is that spike was all about some interim stops being removed just above 1.3550. 

So, it has drifted back down once again, seemingly led by the rebound in the USD/JPY. Beyond the Yen and GBP/JPY dynamic, the Pound is facing some potentially very strong headwinds ahead of the BOE policy decision next week (more on that later). UK Treasury yields remain elevated and still at unsustainable levels quite honestly. The news of yet more high profile billionaires leaving the UK is not good news either and neither is the prospect of more UK tax increases down the road in the October 28 budget.

Sorry to say folks, there is a dearth of good news out there for the Pound at the moment. The GBP/USD is currently trading at 1.3528