GBP/USD hit 1.3158 on Friday, the highest level since 4th August driven by a continued weakness in the US dollar.

Cable is up over 350 points since 24th August as fears over Trump’s presidential competency is questioned and geopolitical tensions rise.

Hurricane Irma is barreling towards Florida and the potential devastation is driving investors out of the greenback as the chance of a December rate hike falls.

In addition, there are concerns North Korea is planning another missile test over the weekend which will likely lead to further condemnation from the US.

Outlook

Despite the rally, investors are still cautious about the outlook of GBP/USD as the UK navigates Brexit negotiations.

“The pound faces a number of potential stumbling blocks in the weeks ahead,” said Simon Derrick, market analyst at Bank of New York Mellon.

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