• Cable extends rally through 1.31 as the dollar is in freefall

• Move gathered pace after China hiked tariffs to 125% from 84%

• As previously mentioned, confidence in the dollar has been damaged

• EUR/GBP pulling back from daily highs also supporting the pound

• The cross slips back through 0.87

• Though the break above 1.31 puts focus on Apr 3 high at 1.3207

• Risk-reward in chasing GBP higher at current levels is unfavourable

• Given the size of the move, there is a pullback risk. Sppt = 1.2915-30
GBPUSD hourly chart

(Justin McQueen is a Reuters market analyst. The views expressed are his own.)