On Tuesday, US dollar has slowed down, so other currencies mostly managed to take a breath following the recent greenback's aggression. The sterling was among these currencies showing attempts to rebound from the bottom below the 1.2826 handle touched yesterday. Still, the current recovery is hardly strong enough, so it appears to be a break before the new series of the decline.
It should be noted good labour market results in the UK and a lack of the sterling reaction to the report. According to the released data, earnings rose at the highest pace since Q3 2015. Moreover, earnings without bonuses soared over almost 10 years. All these factors look sufficient to become a driver for the rise, especially the current sterling attractiveness on the previous slackening.
At the same time, traders are in no hurry to open long positions as the Brexit remains vague. In particular, the officials reportedly say that the chance of the deal is 95%, the market remains concerned about the remaining 5% covering the Irish border problem. This means that no-deal Brexit is still possible as before.
As a result, the sterling seems to keep ignoring any positive changes until the UK and EU representatives eventually agree on the complete deal. Traders, in their turn, will not include interest rate increase in the price citing already famous Brexit uncertainties.
In the near term, sterling sales on the rise will keep making sense in particular given strong US dollar.